Question? Please help!

H

Hitnruntrader

Just curious if anyone knows the actual rules?

This question is in regards to tax loss selling.

I was under the impression if you wanted to lock in a loss for 2006, you would have to do it today. It takes three days for the trade to settle right?

Other people are telling me that you can sell on the last trading day of the month and still lock in the loss for 2005.

Does anyone know the true answer to this?

Thank you for any responses.

:)
 
Quote from Hitnruntrader:

Just curious if anyone knows the actual rules?

This question is in regards to tax loss selling.

I was under the impression if you wanted to lock in a loss for 2006, you would have to do it today. It takes three days for the trade to settle right?

Other people are telling me that you can sell on the last trading day of the month and still lock in the loss for 2005.

Does anyone know the true answer to this?

Thank you for any responses.

:)
More...

it is a grey area so you can use whichever date works best for you, but you can sell up till the last day and lock in a loss.
 
Quote from vhehn:

it is a grey area so you can use whichever date works best for you, but you can sell up till the last day and lock in a loss.
More...


Thanks for the response.

Thats interesting. I never thought for a second it would be a grey area.

I thought it would be cut and dry.

So im still confused???

:eek:
 
Why are you worried about filing your 2006 taxes?

If you want to take a loss for tax year 2005, (The Current Year) you have until 4PM Friday 12/30/05. It is not grey, it was and still is Trade Date for individuals.

** I am not a C.P.A.**
 
Quote from Surdo:

Why are you worried about filing your 2006 taxes?

If you want to take a loss for tax year 2005, (The Current Year) you have until 4PM Friday 12/30/05. It is not grey, it was and still is Trade Date for individuals.

** I am not a C.P.A.**
More...


Ok!

So for individuals, they have up until the end of the month, but for institutions, it had to be today.

Cool.


Thanks!
 
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