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Which year do I use for income tax purposes if I sold stock at the end of December but the settlement date was January 3?

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Which year do I use for income tax purposes if I sold stock at the end of December but the settlement date was January 3?

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The IRS generally requires that you report the sale in the year in which it was executed, rather than settled. If you sell shares in December, any gains or losses you realize should be reported in the same calendar year.

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