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kevincai2000
New Member

Derivative warrant - capital lost

Hello,
I bought some derivative warrant from the public stock market which expired in 2016, It was as same as buying the stocks, but I didn't have chance to sell it, and after it expired in 2016, it's value became 0. since there wasn't sold transaction, so I didn't receive the T5008 form, however I did have the captibal lost since I bought this derivative warrant. Can I claim it as the capital lost? Thanks a lot for any suggestions.
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Accepted Solutions
TurbotaxRobert
Level 2

Derivative warrant - capital lost

If you purchased a warrant (right to buy securities) that subsequently expired (without being exercised) in 2016, you are considered to have disposed of the warrant on the date of expiry and you will have a capital loss equal to the original cost of the warrants (because the proceeds of disposition is "nil").  If the warrants expired in 2016, you will report a capital loss in your 2016 tax return.

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2 Replies
TurbotaxRobert
Level 2

Derivative warrant - capital lost

If you purchased a warrant (right to buy securities) that subsequently expired (without being exercised) in 2016, you are considered to have disposed of the warrant on the date of expiry and you will have a capital loss equal to the original cost of the warrants (because the proceeds of disposition is "nil").  If the warrants expired in 2016, you will report a capital loss in your 2016 tax return.

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ISLACKOI
New Member

Derivative warrant - capital lost

Furthermore to the above question. 

 

Since you don't receive a T5008 for the expired warrants. On which form would you report this capital loss on?

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