The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: FarmerPete on December 19, 2014, 09:32:33 AM
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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).
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No technically you bought the stock on 12/19/13. After a year it is considered long term. Not on or before. Check tomorrow.
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"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
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"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!)
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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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365 days + 1.
http://www.fool.com/personal-finance/taxes/how-to-calculate-a-holding-period.aspx