You may have an investment in some shares or debt which have become worthless, but you can’t sell them because the security is no longer listed on a stock market. There is a section of the Income Tax Act that allows you to claim a capital loss on these shares or debt even though you cannot sell them. This section also applies to debt owed by a corporation to you. Therefore, you could potentially receive a large tax refund by triggering a tax loss without having to incur any cost at all.
This is a popular tax strategy. For example, if […]