23
votes
Accepted
Why does Canada's superficial loss rule also include a clause for "30 days before the sale"?
There is a simple reason why the the 30 day period extends in both directions. It becomes clear once you define the timeline of events.
Lets pretend that the superficial sales rules didn't exist.
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6
votes
Why does Canada's superficial loss rule also include a clause for "30 days before the sale"?
The answer by mhoran_psprep gives a very good example, but I'll explain more about the rationale of the concept.
Similarly to the US wash sale rules, in Canada the law prohibits tax loss harvesting as ...
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