Tax Loss Harvesting Guide 2025: Superficial Loss Rules & Capital Loss Strategies

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Complete tax loss harvesting guide for Canadian investors: superficial loss rules, settlement timing, capital loss strategies, year-end planning, and optimization techniques for 2025.

• Article details: Tax Planning; published December 6, 2025; 10 min read.
• As year-end approaches, sophisticated Canadian investors are implementing a powerful tax strategy that can save thousands of dollars: tax loss harvesting. By strategically realizing capital losses before December 31, you can offset capital gains, reduce taxable income, and improve your portfolio's after-tax returns.
• However, tax loss harvesting is governed by complex rules—particularly the superficial loss rule—that can deny your tax benefit if you're not careful. With critical December 27 settlement deadlines and 30-day windows to navigate, understanding the mechanics is essential.
• This comprehensive guide explains everything Canadian investors need to know about tax loss harvesting in 2025: how it works, when to act, how to avoid superficial loss traps, and advanced strategies to maximize your tax savings.
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• This article is for informational purposes only and does not constitute professional tax or investment advice. Tax rules are complex and subject to change. Capital markets involve risk, and investment decisions should be made based on your overall financial situation and goals, not solely for tax benefits. Consult with ARMalik Professional Corporation or another qualified tax professional for advice specific to your personal situation.

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• Contact ARMalik: Ask a Markham CPA about how this topic applies to your situation.

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