Can I claim an income tax loss if a stock in my RRSP went bankrupt?

Gena Katz, a chartered accountant and principal with Ernst and Young, has the answer.

Gena Katz 12 February, 2003 | 2:00PM

Dear Expert:

I have two different stocks in my RRSP that are no longer being traded because the companies went bankrupt. What do I do with them? Can I claim an income tax loss on my income tax return?

Expert Opinion:

There's nothing that has to be done with respect to the loss on these shares. Although one of the beauties of RRSPs is that no tax is payable on income or capital gains earned within the plan, there is also no tax break in relation to losses realized within the plan. So in this case, you cannot claim a capital loss.

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Gena Katz

Gena Katz