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Tax-Loss Harvesting (TLH), 2024

yogibearbullyogibearbull
in Other Investing
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.

Comments

  • yogibearbullyogibearbull
    edited November 29
    A reminder that TODAY is the last day to execute the old TLH strategy of doubling-up and selling the older lot by the yearend. The stock market also closes EARLY at 1:00 PM ET.
  • BaluBalu
    No Turkeys in this forum?

    In case any one is interested, after market trades today also qualify for the TLH mentioned in the OP. Place only limit orders in after market session.
  • Sven
    What if there is no loss over the past 12 months?
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