Author Topic: When does a Short term gain turn into Long?  (Read 1869 times)

FarmerPete

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When does a Short term gain turn into Long?
« on: December 19, 2014, 09:32:33 AM »
So, I have an investment that I've wanted to sell for a week or so.  Price has gone up crazy the last few days, and I want to lock in my gains.  I bought the investment on 12/19/2013.  I would have thought that it should have turned to long today, but it's still showing up as short on Fidelity's website.  Is this normal?  Technically, I didn't actually buy it on 12/19/2013.  I bought it years ago, but when the company merged/bought another company last year, they reissued the stock forcing me to sell (and pay taxes on it) and buy the new stock (with the same exact ticker symbol).

matchewed

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Re: When does a Short term gain turn into Long?
« Reply #1 on: December 19, 2014, 09:36:06 AM »
No technically you bought the stock on 12/19/13. After a year it is considered long term. Not on or before. Check tomorrow.

PathtoFIRE

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Re: When does a Short term gain turn into Long?
« Reply #2 on: December 19, 2014, 09:37:40 AM »
"To determine how long you held the asset, count from the day after the day you acquired the asset up to and including the day you disposed of the asset."
http://www.irs.gov/taxtopics/tc409.html

skyrefuge

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Re: When does a Short term gain turn into Long?
« Reply #3 on: December 19, 2014, 11:21:58 AM »
"To determine how long you held the asset, count from the day after the day you acquired the asset up to and including the day you disposed of the asset."
http://www.irs.gov/taxtopics/tc409.html

But what is "one year"? 365 days, or calendar-date to same-calendar-date? Because, in a leap-year, those things are different!

Excuse me, I must run off to start a hedge-fund that somehow exploits this Leap Year discontinuity!! (I haven't Googled it yet, but I bet someone has actually already done this, or at least publishes a newsletter based on it!)

FarmerPete

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Re: When does a Short term gain turn into Long?
« Reply #4 on: December 19, 2014, 12:22:38 PM »
Bugger it.  I feel cheated.  Partially because I had a unplanned taxable event a year ago and was forced to get a bunch of unplanned taxed income in December, and partially because now I feel like I can't sell it when it's so close to going long.  Hell, it's already well off it's high's for the day.

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