A superficial loss can occur when you dispose of capital property for a loss and both of the following conditions are met:
1. You, or a person affiliated with you, buys, or has a right to buy, the same or identical property (substituted property) during the period starting 30 calendar days before the sale, and ending 30 calendar days after the sale.
2. You, or a person affiliated with you, still owns, or has a right to buy, the same or identical property (substituted property) 30 calendar days after the sale.
If you have a superficial loss, you cannot deduct it when you calculate your income for the year. However, if you are the person who acquires the substituted property, you can usually add the amount of the superficial loss to the adjusted cost base of the substituted property. This will either decrease your capital gain or increase your capital loss when you sell the substituted property.