What is a superficial loss?
In one line: A superficial loss is a capital loss the CRA won't let you claim because you, or someone tied to you, bought the same property within 30 days before or after the sale.
How it works
A superficial loss is Canada's version of the US wash sale. It happens when all three are true:
- You sell shares at a loss.
- You, or someone affiliated with you, buy the same shares in the 30 days before or after the sale. Your spouse counts. So do your own TFSA and RRSP.
- At the end of the 30th day after, that person still owns them.
When it applies, you can't claim the loss now. Usually it's added to the Adjusted cost base of the shares that were bought back, so you get it later when you sell those.
The rule comes from the Income Tax Act. As of October 2026, the CRA explains it on canada.ca. Check it there before you file.
Options count. A right to buy the same shares, like a call you bought, is treated as the same property. A put you sold that gets assigned inside the window is a purchase of the shares. Both are common wheel moves right after a loss.
An example (hypothetical)
This is the case where the loss is gone for good. All numbers are made up.
May 1. In your regular account, you sell 100 shares of XYZ. You paid $5,000. You sell for $3,000. That's a $2,000 loss you plan to claim.
May 4. In your TFSA, you sell one $30 put on XYZ for $1.00 ($100).
May 20. XYZ falls to $27. The put is assigned. Your TFSA buys 100 shares at $30. You still hold them on May 31.
| Step | Amount |
|---|---|
| Loss on the regular-account sale | −$2,000 |
| Bought back by your TFSA within 30 days | Loss is superficial |
| Added to the TFSA shares' cost? | It doesn't help: TFSA gains and losses don't count for tax |
| Loss you can claim | $0 |
| Tax loss gone for good | −$2,000 |
The money loss is still real. You just lost the tax value of it too. The same trap applies to an RRSP.
Why it matters for sellers
The wheel strategy makes this easy to trip. You sell a losing stock, still like it, and sell a put on it. If that put is assigned within 30 days, the rule kicks in.
What to do:
- Before you sell a put after a loss sale, count 30 days from the sale.
- Don't buy the same shares or calls on them in your TFSA or RRSP inside that window.
- Check your spouse's trades too.
- If you want to stay in the stock, wait out the 31 days, or buy a different company.
Full scenarios: the superficial loss rule with options. More on accounts and taxes: selling options in Canada.
Questions
How many days is the superficial loss rule?
Thirty days before and thirty days after the sale, so a 61-day window including the sale date. You must still own the new shares at the end of the 30th day after.
Does selling a put trigger a superficial loss?
If it's assigned inside the window, yes, because you bought the shares. A put that expires unassigned is a grey area; experts differ, so ask a tax professional.
Is a superficial loss lost forever?
Usually not. It's added to the cost of the shares you bought back. But if those shares were bought in your TFSA or RRSP, the loss is gone for tax purposes.
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