Zwaig : What is tax loss selling?

especially this early in the morning. Go easy on me. It's Adele at 622, about a month ago, I guess. Adele wrapped up her two-year, biggest residency at Caesars Palace. Did 100 shows there at the venue, the Colosseum at Caesars? That's a Cylenzold stomping grounds, right? That's her stage.

And if you're an Adele fan, you might have heard about the box set she's releasing from all those Vegas shows. It's a limited edition vinyl box set titled weekends with Adele. Sounds like a radio show. You may have to be rolling in deep pockets for this one. It's priced this box set from Adele at $350 US, 350 US. That's about 400. That's a little more than 400 Canadian. Here's what you get for your money.

uh... offers listeners a one-of-a-kind audio experience it says it's uh... three vinyl records but two hours long in length that twenty-one songs all are hits and also includes a lot of the live banter that uh... those adele shows in big is that became known for such a lot of back and forth with all the audience in members of the audience but that's not all second information that's not all there's more you get a fifty six page photo book

A bag of confetti directly from the show. How are they proving that? And a fold-out box that mirrors the Vegas stage. It won't be available until April, apparently, of 2025, a few months away. But you can pre-order it. If you're a big Adele fan, or you know someone who is on the Adele website. Wow. It's a good size though. 624. Speaking of money, let's bring in Arnie's way. Portfolio manager, senior wealth advisor at Scotia McCloud. Arnie, good morning.

Good morning, Ken, and I hate to correct you, but it's cost at the current exchange rate is just over $500. What? Yeah. The 350... Yeah, you're right. You're... What am I saying? What am I saying? You know, you're living in a different, an alternate universe there, Ken. One that the most Canadian travelers would prefer. Right, right. No one said there was going to be math this morning.

I used to calculate. Yeah. Arnie, Merry Christmas. Happy Hanukkah. Thank you to you too, Ken. Yeah. How was the turkey? Turkey was great. Yeah, it was wonderful. And we had a really nice time at my niece's house in Sino's stash. Yourself did you have a nice day yesterday?

Lovely. Lovely. You know, a lot of nothing. And that was great. I know. I watched a couple Christmas movies. Oh, good for you. Can you share? Yeah. Can you share which one? You know what? They're all the same. You know, those hallmark formulas are all the same. Oh, yeah. No, but I always watch the ref and always enjoy the ref.

Who's in there? Is that Dennis Leary? And Kevin Spacey. Thank you. It's OK. Very good. Arnie, we're going to do a little something for our listeners this morning who might be interested in this. We're going to talk about tax loss selling, what it is, and when the deadline is.

Yeah, look, for investors outside proper diversification and personal risk management, minimizing taxable capital gains is usually desired. And as we approach the end of the year, Ken, and especially a year whereby we had strong gains like this past year,

The real challenge is finding ways to manage their losses. Most a lot of stocks in North America had gains this year. It's really a challenge to find stuff in your portfolio that did lose money. In Canada, you can apply capital losses against capital gains.

And taking advantage of the strategy can help you lower any taxes owed. And you can accomplish this by simply selling an investment that has an unrealized loss to offset a realized gain. And once you use this technique and once you've sold the stocks and have losses, you can actually apply those losses backward for as much as three years. Okay. And when is the deadline?

the transaction has to be completed in this calendar year so transaction deadline for this year is monday december 30th and you know uh...

We have to remember that this strategy only applies in taxable accounts. So if you have losses within registered accounts, RFS, TFSAs, it's not helpful from the tax point of view. Another point, though, Alcan is often people sell a stock that

has lost value, but they don't wish to reduce the exposure that they have to a specific sector or market. So you can come up with this replacement strategy using a similar type stock or an exchange traded fund in that sector thereby maintaining your exposure. Is tax loss selling a common practice commonly used by a lot of investors?

You know what? It is. It is commonly used. People hate paying tax on capital gains, although they made money. They just would like to find a strategy to reduce that tax bill. And this is the only one that's available to you. Quite right this time of year on the markets.

Absolutely. But, you know, Tuesday started the seasonal Santa Claus rally as it's identified, which is happens in the last five trading days of calendar year and the first two trading days in January.

Since 1950, the S&P 500 has generated an average of 1.3% during this period. Tuesday it gained 1.1%. So we thought it was well on its way. But US markets seem to be struggles. Markets are open. Canadian markets are closed. Dow futures are pointing down about 270 points right now. Arnie, thank you for this as always. And we'll talk again soon. Enjoy your day today.

You as well, Ken. Bye. Bye. Bye now. Arnold's awake.