Tax Loss Selling is a popular trading tactic among investors that involves selling any assets that have seen declines in value throughout the year. By selling these assets, investors can realize losses for tax purposes. Tax Loss Selling can be beneficial as it can help reduce one’s overall tax burden, as well as free up funds for other uses.
In order to take full advantage of Tax Loss Selling, it’s important that investors know when to trigger the sale. By planning ahead, investors can maximize their tax savings and avoid missing out on the opportunity.
The most important date to mark on your calendar when it comes to Tax Loss Selling is the so-called “Last Trading Date.” This is the last day on which you can sell your asset in order to realize a tax loss for the current year. The Last Trading Date for most securities is December 24th. This means that all sales must occur on or before December 24th in order to book a tax loss in the current year.
It’s important to note, however, that these dates may vary depending on the security’s market holiday schedule. For example, if a security trades on the NYSE, the Last Trading Date might be earlier than December 24th. If you’re looking to trigger a tax loss for a security traded on the NYSE, it’s important to research the security’s market holiday schedule ahead of time to determine the proper Last Trading Date for the current year.
All in all, Tax Loss Selling is an important tax strategy that can help reduce one’s overall tax burden. However, in order to fully take advantage of the strategy, investors should plan ahead and mark the “Last Trading Date” on their calendars well in advance. By doing so, investors can maximize their tax savings and avoid missing out on the opportunity.