For tax harvesting with US Stocks, is the date of the taxable event the trade date or the settlement date?

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For tax harvesting with US Stocks, is the date of the taxable event the trade date or the settlement date?

For instance, for this year, to realize a gain or loss, can I sell/buy on the last trading day of the year, December 29th, or would I need to trade on the 26th (T+3)?

2006-10-04 05:11:37 · 2 answers · asked by KQ 2 in Business & Finance ➔ Taxes ➔ United States

2 answers

No it is not cash basis accounting. A trade date must be by the last business day of the year for a gain or loss to be recognized.

2006-10-04 08:40:10 · answer #1 · answered by spicertax 5 · 1⤊ 0⤋

Cash based accounting. As soon as the money left your accounting, the even will be part of this year's return.

Best wishes.

2006-10-04 05:32:50 · answer #2 · answered by JQT 6 · 0⤊ 0⤋