Yes, I make them, too. (Especially writing at 5 AM, lol).
It is the Trade Date that controls the reporting…most of the time.
A reader referred me to the discussion over on the Zacks website with this juicy morsel:
“In almost all cases, the trade date controls the tax-reporting year for a stock sale. That is, if you sell stock by the last trading day of this year, you report the sale on this year’s taxes. The exception occurs when you close out a short sale for a loss, in which case the settlement date controls the reportable tax year.”
What’s interesting is how could I have slipped such a cog?
Well, like almost everyone, seems, the easiest way to handle a large number of trades is to simply import everything into TurboTax and let them figure it. We generally don’t hold postions between years…
I sincerely apologize for the errant report: We don’t have many of them to be sorry for, but this one’s important. Thanks…