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Gold/Mining/Energy : Day trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: StockPro who wrote (2089)	1/24/1999 8:10:00 AM
From: Rob Davis	Read Replies (2) \| Respond to of 4467

To All: I have a tax question that I'm hoping that someone can answer. I don't remember all of the details of what I'm going to question, so please let me know if I'm out in left field. I think that there is some sort of Rev.Canada rule that says you can't declare a loss for tax purposes if you buy the shares back within a 31 (?) day period. If this is true, how does the accounting work when someone buys 1000 shares of ABC at $10.00, then sells them two days later at $9.50 for a loss. Then, a week later, they buy 1000 shares of ABC at $9.75 and sell them that same day for $10.75. So, in effect (ignoring commissions), they lost $500 and then made $1000. Would they only pay tax on the net $500 gain, or would the "wash trade" rules enforce that they pay tax on $1000 and not be able to use the $500 loss to offset the gain? Thanks, Rob