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Does selling a put after a loss trigger the superficial loss rule?
It can. If you sell shares at a loss and your put on the same stock is assigned within 30 days, you've bought the shares back, and the loss is denied for now. A bought call can count too. Here's the rule and a full example.
The short answer
A Superficial loss is a capital loss the CRA won't let you claim yet. It happens when all three of these are true:
- You sell shares at a loss.
- You, or someone affiliated with you like your spouse, buy the same shares in the 30 days before or the 30 days after the sale.
- At the end of that 30th day after, you or that person still own the shares, or a right to buy them.
When it applies, the loss isn't lost. It's added to the Adjusted cost base of the shares you bought back. You get it later, when you sell those.
Options make this easy to trip. A put that's assigned inside the window buys the shares back. A call you buy is a right to buy them. Both are common moves in the wheel strategy, right after a loss.
As of October 2026, the rule is the "superficial loss" definition in section 54 of the Income Tax Act. The CRA's Capital Gains guide (T4037) explains it in plain words.
Which option moves count?
| What you do within 30 days of the loss sale | Does it trigger the rule? |
|---|---|
| Buy the same shares back | Yes, if you still hold them on day 30 |
| Sell a put that is assigned inside the window | Yes. Assignment is a purchase |
| Sell a put that expires, never assigned | You never bought anything. Experts differ on whether the put alone counts, so ask your tax preparer |
| Buy a call on the same stock, still held on day 30 | Plan as if yes. A call is a right to buy the shares |
| Your spouse buys the shares | Yes. A spouse is affiliated |
| You buy them in your TFSA or RRSP | Yes, and the loss is usually gone for good (see below) |
| Buy a different company in the same industry | No. It has to be the same or identical property |
The window runs both ways. A put assigned 20 days before your loss sale counts too, if you still hold those shares on day 30. So does buying shares before you sell the old ones.
A worked example where it bites (hypothetical)
All numbers are made up, in Canadian dollars, in a regular account.
The loss sale, November 1. You own 100 shares of a made-up stock, XYZ, with an ACB of $6,000 ($60 a share). XYZ has fallen to $45. You sell all 100 for $4,500. On paper that's a $1,500 capital loss you'd like to claim this year.
The put, November 5. You still like XYZ. You sell one $45 put for $1.50, and collect $150.
The assignment, November 26. XYZ closes at $43. Your put is assigned. You buy 100 shares at $45. That's 25 days after the loss sale. You still own them on December 1, day 30.
All three tests pass. The $1,500 loss is superficial. You can't claim it this year.
Where it goes. The denied loss is added to the new shares' ACB:
| Item | Amount |
|---|---|
| Assigned at $45 × 100 | $4,500 |
| Minus the put premium | −$150 |
| Plus the denied loss | +$1,500 |
| New ACB | $5,850 ($58.50 a share) |
What happens next, February. XYZ keeps sliding. You sell the 100 shares at $38, for $3,800.
| Item | Amount |
|---|---|
| Proceeds | $3,800 |
| ACB | $5,850 |
| Capital loss | −$2,050 |
What that cost you
The money is the same either way. You put $6,000 in, collected $150, and got $3,800 back. That's a real −$2,050 in cash, with or without the rule.
What changed is timing. The $1,500 you planned to claim in year one moved into year two. If you had gains in year one to offset, they're now taxed in full that year. You get the loss back in year two, when you may not need it as much.
And if you'd never sold the new shares, the loss would sit in your ACB, unused, for as long as you held them.
The TFSA and RRSP trap
This is the case that hurts most. Say you sell XYZ at a loss in your regular account. Then, within 30 days, you buy XYZ in your TFSA, or your TFSA put is assigned.
The loss is denied. It's added to the ACB of the TFSA shares. But a TFSA has no ACB that matters for tax. So that loss never comes back. It's gone.
The same goes for an RRSP. If you hold the same stock in more than one account, check all of them before you sell at a loss.
How to avoid it
- Wait 31 days. After a loss sale, don't sell a put, buy a call or buy the shares on that stock for 31 full days. Weekends count.
- Check the 30 days before, too. A put assigned last week counts.
- Check every account, including your TFSA, RRSP and your spouse's accounts.
- Sell a put on a different company if you want to stay in the sector. A different stock isn't identical property.
- Or accept it on purpose. If you have no gains to offset this year, a deferred loss may cost you little. Know which case you're in.
Our superficial loss calculator checks your dates and works out the new ACB. For how the premium and assignment fit the rest of your ACB, see ACB after a put is assigned. The full Canadian picture is on selling options in Canada.
Questions
Does selling a put count as buying the shares for the superficial loss rule?
An assigned put does, because assignment is a purchase. A put that expires unassigned never bought anything, and opinions differ on whether the put alone counts. If you're relying on the loss, ask your tax preparer before you sell the put.
Is the superficial loss rule 30 days or 61 days?
Both ways of saying it are right. It's 30 days before the sale and 30 days after, so the full window is 61 days including the sale day.
Is a superficial loss lost forever?
Not in a regular account. It's added to the ACB of the shares you bought back, so you claim it when you sell them. If the shares were bought in your TFSA or RRSP, the loss is effectively gone for good.
Does buying a call trigger a superficial loss?
Plan as if it does. A call is a right to buy the same shares, and the rule looks at whether you own or have a right to buy them at the end of the 30 days. Waiting 31 days avoids the question.
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