You are right, Carl.
However, I have a fuzzy memory that it is possible to use settlement dates, however you must be consistent and use it for all your trades; I have nothing to verify this vague recollection, however, and it may very well be faulty. But here's something concrete, and the way I always do it....
I just happened upon this a minute ago at:
irs.ustreas.gov
Here's a relevant bit [emphases are mine]:
<<Securities traded on an established market. For securities traded on an established securities market, your holding period begins the day after the trading date you bought the securities, and ends on the trading date you sold them. Ignore the settlement dates for tax purposes.
Example. You are a cash method, calendar year taxpayer. You sold stock at a gain on December 30, 1998. 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 5, 1999. You received payment of the sale price on that same day. Report your gain on your 1998 return, even though you received the payment in 1999. 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 30. If you had sold the stock at a loss, you would also report it on your 1998 return.>>
Anaxagoras |
