Trade Date:  Friday, December 29, 2023 

Profits or losses for long stock/ETF shares, long or short equity/ETF options, and Broad-Based Index Options* (i.e., SPX, NDX, VIX, etc.) report based on their trade date. As a result, any long stock/ETF share position, individual option, or option spread position must be closed by Friday, December 29, 2023, if you wish to report the gain or loss for the 2023 Tax Year.

Long and short options that expire out-of-the-money and worthless on Friday, December 29, 2023, will act as the "closing transaction." As a result, the loss or gain from the option will report in the 2023 tax year. 

Unfortunately, losses on long options that expire in 2024 that do not have a bid price ($0.00) cannot be harvested in 2023 unless they are closed. You must carry any long options with a $0.00 bid that cannot be closed to the 2024 calendar year. Only realized losses can get reported, which requires an option to be closed or expire worthless.

Trade Date:  Wednesday, December 27, 2023 

Short stock or ETF share positions are reported based on their settlement date (T+2) rather than their trade date. Due to position settlement, to harvest a gain or loss for the 2023 Tax Year, you must close the position by Wednesday, December 27, 2023, to report the profit or loss. Due to position settlement, any short stock or ETF share position closed after December 27, 2023, will report in the 2024 tax year because the short position would settle in the 2024 calendar year, despite closing it in the 2023 calendar year.

Accounts holding over-the-counter (OTC) or delisted securities are subject to the same trade date deadlines listed above, depending on your position type. You can determine whether your account has delisted securities by referring to your most recent monthly account statement. Additionally, if you see a delisted position quote on the platform but receive an "instrument_validation_failed" error when routing a closing order, that also indicates that your account holds a delisted security. 

To close a delisted security position to realize a gain or loss for the 2023 tax year, please reach out to our trade desk (tradedesk@tastytrade.com) before the deadlines listed above based on your position type.

Trade Date:  Friday, December 29, 2023 

Futures are unique because they are marked-to-market at the end of each trading day. The IRS calls these products Section 1256 contracts. As a result, if you do not want to hold a futures position into 2024, the last day to close a futures position is Friday, December 29, 2023. However, if you hold a futures position into the 2024 calendar year, your futures positions will be mark-to-market. That means a position will report as a profit or loss based on the closing mark, or mark-to-market, despite NOT being closed. To learn more about mark-to-market, please click  here.

 *Also, a reminder about Broad-Based Index Options 

If you trade any cash-settled index options or spreads (SPX, NDX, RUT, VIX, etc.) and wish to realize a profit or loss, the last day to close is  Friday, December 29, 2023. To view a list of cash-settled index options, please click  here.

Furthermore, broad-based index options (cash-settled index options) are Section 1256 contracts. That means any open broad-based index option position(s) held from 2023 to 2024 will mark as a profit or loss, or mark-to-market, based on the closing mark on December 29, 2023.

Trade Date:  Before 6:00 PM Central on Sunday, December 31, 2023 

Cryptocurrencies are unique since they continuously trade and do not have sessions breaks like equities or futures. Consequently, to harvest a gain or loss on a crypto position, you must close it before 6:00 PM Central (UTC−06:00) on Sunday, December 31, 2023. In other words, the latest you can close a cryptocurrency position to have it report for the 2023 tax year would be at 5:59:59 PM Central (Chicago time).