tag:blogger.com,1999:blog-5433839636644874439.post2511452567027746281..comments2024-03-04T13:37:11.022+00:00Comments on Canadian Financial DIY: Tax-Loss Selling Index ETFs: How to Do It RightCanadianInvestorhttp://www.blogger.com/profile/05645767559302303541noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5433839636644874439.post-79791438910999258812008-11-14T12:19:00.000+00:002008-11-14T12:19:00.000+00:00Thanks for the helpful info, @canadianinvestor. (I...Thanks for the helpful info, @canadianinvestor. (I didn't know how else to send a thanks - feel free to delete this you you don't like the clutter in the comments.)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-5214230175078522072008-11-14T00:28:00.000+00:002008-11-14T00:28:00.000+00:00Bliar, Unfortunately you would be caught in the su...Bliar, Unfortunately you would be caught in the superficial loss rules of the CRA. I posted an explanation how this works here: http://canadianfinancialdiy.blogspot.com/2007/09/capital-losses-and-superficial-loss.html<BR/>You could get around it by buying another US ETF sufficiently different from VTI in composition but whose returns would be 99% the same, i.e. another broad market based ETF based on different indices like IYY, IWV and ISI. It would be taking something of a chance since the CRA will never tell you outright whether such and such a fund is ok or not respecting the superficial loss rule. It's my opinion, I'm not a professional, and as usual you ultimately have to decide for yourself.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-75624995232313698012008-11-11T14:44:00.000+00:002008-11-11T14:44:00.000+00:00Very informative. Thanks. I have a question I was ...Very informative. Thanks. I have a question I was hoping you could help with, though.<BR/><BR/>What happens if one buys an ETF that's held inside a registered account at the same time one buys the identical ETF outside the registered account? I hold VTI both inside and outside my RRSP, and my other large ETF inside the RRSP is a bond fund and has appreciated in value. I'm interested in rebalancing, so was considering selling some of the bond fund, but there's nowhere for the money to go, so I thought I'd use the proceeds to up my exposure to VTI inside the RRSP, which would overbalance me in US, so I'd then sell some VTI outside the registered account and purchase another security to rebalance.<BR/><BR/>It involves an extra transaction fee or two, but in theory I'd be all balanced and (maybe) would be able to lock in my loss for the portion of the VTI that I sold <I>outside</I> the RRSP. Typically capitcal gains/losses inside the RRSP don't really matter, so I'm wondering if buying inside the RRSP and selling outside would have the same consequences as those you describe in the article.<BR/><BR/>An alternative would be to sell some of the bond ETF in the RRSP and purchase an ETF that will help me rebalance right inside the RRSP, but it's Canadian content that needs shoring up, and I was hoping to keep the Canadian equities outside the RRSP because of their preferential tax treatment.<BR/><BR/>Any insight you can offer would be appreciated.<BR/><BR/> BlairAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-24867250313757766432008-06-16T18:34:00.000+00:002008-06-16T18:34:00.000+00:00Good blog, and you answered my question about buyi...Good blog, and you answered my question about buying an "identical" ETF and getting a tax loss.... Thanks!Anonymousnoreply@blogger.com