When does the tax year end for the Stock Market?

Question

I just started investing in the stock market last February and was making a little bit of money until about late Sept/Oct. when the market crashed and i lost about 70% of my money. Since then i sold off all my stocks and have been trading different stocks (sometimes day trading, but mostly holding them for a week or so), riding the waves trying to get my money back on good companys that have been beat down (POT, Drys, Citi, V to name a few).   Anyways i am only down a couple hundred bucks from my initial deposits, so still at a loss which is ok. Right now i have money in Citi and will probably find something else before years end to invest in. At this point i want to claim a loss or break even for the year so i need to watch what i am doing before i buy/sell from here out.   &#xD;&#xA;I am assuming that the year ends on Dec. 31st and any profits/losses after that go onto the next tax year.  I just want to make sure that it isnt on a fiscal year type system or however them business quarters are on.

Sherman79 · Answer

I just started investing in the stock market last February and was making a little bit of money until about late Sept/Oct. when the market crashed and i lost about 70% of my money. Since then i sold off all my stocks and have been trading different stocks (sometimes day trading, but mostly holding them for a week or so), riding the waves trying to get my money back on good companys that have been beat down (POT, Drys, Citi, V to name a few).   Anyways i am only down a couple hundred bucks from my initial deposits, so still at a loss which is ok. Right now i have money in Citi and will probably find something else before years end to invest in. At this point i want to claim a loss or break even for the year so i need to watch what i am doing before i buy/sell from here out.   &#xD;&#xA;I am assuming that the year ends on Dec. 31st and any profits/losses after that go onto the next tax year.  I just want to make sure that it isnt on a fiscal year type system or however them business quarters are on.

depeche2 · Answer

If you&#x27;re reporting normally for an individually (not a Schedule C business) then it is always Dec. 31.  And the markets are open 12/31 this year.

Wake2002 · Answer

I might be wrong here, if someone knows better than I do, please correct me, but I am pretty sure settlement date is used for tax purposes.   If you want to be on the safe side, you might want to make any year-end planning transactions by December 26th.

accventures · Answer

28th I assume...T &#x2B;3

Sherman79 · Answer

[Quote: Originally Posted by accventures] &#xD;&#xA;28th I assume...T &#x2B;3&#xD;&#xA;[/Quote]&#xD;&#xA;what is T &#x2B;3

Wake2002 · Answer

Trade &#x2B; 3 days.&#xD;&#xA; &#xD;&#xA;Means, that your trade will settle 3 business after you place it.  If you are like me, and just have normal stock accounts, make any tax planning moves by December 26th.  If you have investments where you can make trades on the weekends, make your moves by December 28th so they will clear by December 31st.

Sherman79 · Answer

Gotcha. Yeah, it takes 3 days for mine to clear on Sharebuilder.  I will make sure to do any trades that i need to by Friday. Thanks guys

Sherman79 · Answer

I invested some money a few years ago and when i checked my portfolio a couple of years ago, the account was zero, so i lost like $1200.  Back then, i was just using the 1040EZ as i had no other deductions so there wasnt anything i could do with that loss.&#xD;&#xA; &#xD;&#xA;Since i own a home and a couple rental properties now i file the 1040 and itemize my deductions.  Can i add those losses from a a few years ago onto this years tax return?  And if so, how do i go about getting that info to do so

SteelHop · Answer

[Quote: Originally Posted by Sherman79] &#xD;&#xA;I invested some money a few years ago and when i checked my portfolio a couple of years ago, the account was zero, so i lost like $1200.  Back then, i was just using the 1040EZ as i had no other deductions so there wasnt anything i could do with that loss.&#xD;&#xA; &#xD;&#xA;Since i own a home and a couple rental properties now i file the 1040 and itemize my deductions.  Can i add those losses from a a few years ago onto this years tax return?  And if so, how do i go about getting that info to do so&#xD;&#xA;[/Quote]&#xD;&#xA;&#xD;&#xA;I hope you are kidding.&#xD;&#xA;No, in most cases, you can&#x27;t add in losses from previous years to this year&#x27;s tax account becuase your tax status is for 2008 not years you feel like adding information in.  You would need to go back and find out when those losses occurred on your account i.e. when the stock you purchased went to 0 and then file an adjusted tax return for that particularly year.  In all likelihood you are talking about 1200 spread over a couple of years and those losses would be used against any gains (long term) you made in that year.  This would mean changes of maybe a 100-200 overall.  not worth imho.

Sherman79 · Answer

I didnt think i could, but I thought i heard or read somewhere that you can take up to a $3000 loss in a tax year and anymore than that in the same year can be deduducted the following years up to $3000 loss until the total loss is deducted.  I know this is kind of 2 different scenarios, but just wondering. But hell, if theres a chance to get an extra $100 or so back, im going to go after it.  But as i stated, the year that the account went to zero, i wasnt itemizing so it obviously isnt going to do anything for me.

When does the tax year end for the Stock Market?

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