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Replies to post #819 on Cat House

Replies to #819 on Cat House

KJAX

12/30/10 6:19 PM

#820 RE: Jim01 #819

Sorry TAKI, bad info from a broker. Here is some info from the IRS website. Everybody should read it and be familiar with it.

For securities traded on an established securities market, your holding period begins the day after the trade date you bought the securities, and ends on the trade date you sold them. Do not confuse the trade date with the settlement date, which is the date by which the stock must be delivered and payment must be made.
taxmap/pub17/p17-079.htm#en_us_publink1000172344

Example.(p105)
You are a cash method, calendar year taxpayer. You sold stock at a gain on December 29, 2010. According to the rules of the stock exchange, the sale was closed by delivery of the stock 3 trading days after the sale, on January 4, 2011. You received payment of the sales price on that same day. Report your gain on your 2010 return, even though you received the payment in 2011. The gain is long term or short term depending on whether you held the stock more than 1 year. Your holding period ended on December 29. If you had sold the stock at a loss, you would also report it on your 2010 return.

http://taxmap.ntis.gov/taxmap/pub17/p17-079.htm

Pg. 54
http://www.irs.gov/pub/irs-pdf/p550.pdf