December 31st transaction?

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Gamma Ray
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December 31st transaction?

Post by Gamma Ray »

I just wanted to check, if I do a request to sell today in one of my ETFs, will it be recorded Monday morning so that would go into 2018?
livesoft
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Re: December 31st transaction?

Post by livesoft »

Only if the trade executes on Monday.

For instance, I if entered a limit order to sell VTI at $500 a share right now, I don't think it would execute on Monday.

Anyways, the IRS goes by the trade [execution] date and not the order date nor the settlement date.
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runner3081
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Re: December 31st transaction?

Post by runner3081 »

I don't think it will go through, at least if it matches my Fidelity experience.

I put the purchase order in first thing 12/26, it did not actually process until the end of 12/27 - the next stock market day.

Yours will go in 12/31, but not process until 1/2, most likely.
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Gamma Ray
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Re: December 31st transaction?

Post by Gamma Ray »

I thought ETFs could be traded anytime during the day.
I have several buys and sells where there was up to 4-5 days between "trade date" and "settlement" dates, but I thought they always go by the trade time and date when calculating. I just wanted to harvest off my losing shares and consolidate them before year ended to bring my losses up to $3k.
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Flymore
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Re: December 31st transaction?

Post by Flymore »

If you put the order in before market open, it trades that day - no?
I think they'll be a lot of trades on the 31st.
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WoodSpinner
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Re: December 31st transaction?

Post by WoodSpinner »

OP,

ETF market orders will process almost immeadiatly (assuming its for large, broadly owned ETFs like VTI) in the trading day. Should work just fine.
livesoft
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Re: December 31st transaction?

Post by livesoft »

If one puts in a market order before the market is open, then it will trade at the market open. This is discussed in this thread: viewtopic.php?t=165732

And as I already posted: Trade date is what is important and used for 1099s and taxes, not settlement date.

If this is important to the OP, then they should check that the order executed. We've seen more than one poster enter an order incorrectly and not get an execution. My example of a limit order in my first response is one reason.

Here's another example of a bad trade: I go senile, day trade on margin, wash sale, and...
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blackcat allie
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Re: December 31st transaction?

Post by blackcat allie »

On a somewhat related note, for target date mutual funds within retirement account --

Would there possibly be some escape from end of year glide path, if I tried to re-allocate today?
I’m wondering it that could all happen before midnight somehow.

(From another post, I understand that re-allocation on glide path may take place throughout the year, so this might be oversimplified/naive, but I would greatly appreciate any feedback. Later in January my plan is totally changing, so I will need to migrate out of those target funds anyway)

Thanks in advance & Happy/Healthy New Year
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BD w/ Kung-Fu Grip
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Re: December 31st transaction?

Post by BD w/ Kung-Fu Grip »

livesoft wrote: Sat Dec 29, 2018 10:03 pm And as I already posted: Trade date is what is important and used for 1099s and taxes, not settlement date.
So what if I buy $6,000 worth of VTI in my IRA today, and deposit the cash on Wednesday as a 2019 contribution?
I suppose that if I had RMDs, they would be calculated including that $6,000. Otherwise I think it would fly under the radar.
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Doc
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Re: December 31st transaction?

Post by Doc »

I placed a market sell order at 10:50 E. It executed immediately. AT 2:07 I got an email trade notification. Everything has today's date.
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Gamma Ray
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Re: December 31st transaction?

Post by Gamma Ray »

Missed the boat, 31st being monday totally screwed up my internal clock I thought it was still sunday. :(
Oh well, I guess I can always grab the losses for 2019.

Thanks for all the replies, I hope this thread helps others in the future.
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Doc
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Re: December 31st transaction?

Post by Doc »

Gamma Ray wrote: Tue Jan 01, 2019 5:37 pm Missed the boat, 31st being monday totally screwed up my internal clock I thought it was still sunday. :(
Oh well, I guess I can always grab the losses for 2019.

Thanks for all the replies, I hope this thread helps others in the future.
If the trade date was Monday it should go on your 2018 return. In any case your 2099-B should clarify.
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A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.
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