Different country, different rule
The wash sale rule is American. In Canada the equivalent provision is the superficial loss rule. They rhyme — both stop you from claiming a loss while effectively keeping your position — but the mechanics, the window, and what happens to the denied loss are not identical.
Side by side
| US wash sale | Canadian superficial loss | |
|---|---|---|
| Window | 30 days before/after | 30 days before/after |
| Trigger | “Substantially identical” security | “Identical property” |
| Whose purchases count | You (and IRA) | You, spouse, or a corporation you control |
| Denied loss | Added to the replacement’s basis | Added to the ACB of the shares you still hold |
The 61-day window (30 before + sale day + 30 after) is the same idea in both systems.
The denied loss isn’t gone
A superficial loss is deferred, not destroyed. The denied amount is added to the adjusted cost base of the substituted shares, so you recover the benefit when you eventually sell them outside the window. The one exception: if the repurchase lands in a registered account (TFSA/RRSP), there’s no ACB to adjust and the loss is lost for good.
The affiliated-person catch
Canada’s rule reaches further than a lot of people expect. A purchase by your spouse or common-law partner, or by a corporation you control, inside the window will trigger the denial even though a different taxpayer made the trade. Coordinating loss sales across a household is what trips up otherwise careful investors.