IF YOU SELL TODAY 12/28/2007 & THE TRADE SETTLES JANUARY 2008 WHAT IS THE TAX TREATMENT? IS IT FOR 2007 OR 2008?
2007-12-28 03:30:50 · 5 answers · asked by qtlqqknsweethart 2 in Business & Finance ➔ Taxes ➔ United States
It is the trade date, if on an established exchange. Refer to IRS publication 550, page 52, under 'Holding Period', linked below.
It would be a 2007 transaction.
2007-12-28 03:48:12 · answer #1 · answered by just_the_facts_ma'am 6 · 2⤊ 0⤋
It is the settlement day that matters, not the trade date. There is normally a 3 day (business day) settlement period for stock/mutual fund trades. The last trade date for December settlement was 12/26/2007. Those trades would settle on 12/31/2007. Your trade would have to settle in December 2007 to be included on your 2007 1099 form.
If you trade today, 12/28/2007, the trade will not settle until 1/3/2007 and will be included on your 2008 1099 form. Unfortunately, if you were trying to sell for a 2007 tax loss, you are too late.
2007-12-28 03:44:04 · answer #2 · answered by Debs 2 · 0⤊ 3⤋
Date of the trade is what counts, not the later settlement date. So it goes on your 2007 tax return.
2007-12-28 10:13:57 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Trade date is used for taxes so it is 2007.
2007-12-28 03:41:00 · answer #4 · answered by spicertax 5 · 2⤊ 0⤋
The trade date is what counts, so the sale would be reported on your 2007 1040.
2007-12-28 04:12:02 · answer #5 · answered by taxreff 7 · 0⤊ 0⤋