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Bill
Bill, Enrolled Agent
Category: Tax
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Experience:  EA, CEBS - 35 years experience providing financial advice
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Is there any exception to the IRS rule that the date of recognition

Customer Question

Is there any exception to the IRS rule that the date of recognition of gains and losses on sales of securities is the settlement date?
Submitted: 8 years ago.
Category: Tax
Expert:  Bill replied 8 years ago.

The recognition date for determining the holding period for gains or losses on the sale of a security is the trade date not the settlement date.

 

See page 52 regarding "Securities traded on an established market" - http://www.irs.gov/pub/irs-pdf/p550.pdf