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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: is today last day selling for tax loss? Date: 12/24/2000 6:48 PM
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vargaj wrote:

>>Your brokerage will report the transaction date as the date on which the transaction was settled. If you
sell on 12/26, you will settle by 12/29. If you sell later, the transaction will be reported in calendar 2001. Check your existing brokerage statements against your confirmations. You will see that dates on the statements are 3 days behind the dates on the
confirmations.<<

RooCat replied:

>>This is not correct!

The correct date for taxpayers to use is the TRADE date, not the settlement date. "Whether on the cash or accrual method of accounting, taxpayers who sell stock or securities traded on an established securities market must recognize gains and losses on the trade date rather than on the settlement date." CCH U.S. Master Tax Guide #1973. The last date for trades to be recognized for 2000 would be December 29, 2000.<<

Not only is RooCat right, your broker will get it right, too. The end-of-year trades will probably show up on your January 2001 account statement as vargaj states, but they will certainly show up on your *2000* Consolidated Form 1099 statement which gets copied to the IRS. The brokerage will either indicate on the December 2000 statement that the trade is pending settlement or on the January 2001 statement that the trade was reportable in 2000.

Ira
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