Tax-Loss Harvesting (TLH), 2024
It’s never too late to plan for TLH. But some critical dates are approaching.
Funds are allowed to close their books for the year in OCTOBER so that they can timely announce yearend distributions in November/December for fund investors to plan. But some funds still follow the old practice of closing the books in December, but then their distributions may be in the next year (2025) with taxes due in the current year (2024).
Retail investors often wait until DECEMBER for TLH. The market has regular hours on the last day of trading & that is Tuesday, 12/31/24.
The last day to DOUBLE-UP & sell the older lot by the yearend is Friday, 11/29/24 (early market close at 1 PM ET) in order to avoid wash-sale. With commission-free trading, this practice is less popular now. It is easily possible to sell & simultaneously buy something SIMILAR BUT NOT IDENTICAL.
With TLH spread out in October & December, the related JANUARY EFFECT (in 2025) for losing stocks in 2024 will also be weak.
