Capital Gains report miscategorizing long term gain as short term

GA Hiker
GA Hiker Quicken Windows Subscription Member ✭✭
in Reports (Windows)

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My Capital Gains report shows a US Treasury bought 7/15/2024, sold 7/15/2025, as short term. This should be long term.

Comments

  • GA Hiker
    GA Hiker Quicken Windows Subscription Member ✭✭

    Seems like buying a 1 year bond that matures on the same day next year should be long-term. I will see what the 1099 shows.

  • Jim_Harman
    Jim_Harman Quicken Windows Subscription SuperUser ✭✭✭✭✭

    See this excerpt from IRS Pub 544:

    Holding period.

     

    To figure if you held property longer than 1 year, start counting on the day following the day you acquired the property. The day you disposed of the property is part of your holding period.

    Example.

     

    If you bought an asset on June 15, 2023, you should start counting on June 16, 2023. If you sold the asset on June 15, 2024, your holding period is not longer than 1 year, but if you sold it on June 17, 2024, your holding period is longer than 1 year.

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  • BK
    BK Quicken Windows Subscription Member ✭✭✭✭

    @Jim_Harman , I just reviewed the IRS Pub 544 too and find it surprising or rather funny that their example skips selling the asset on June 16, 2024. That would've really clarified the line between short & long, but instead they went with 17th, as a CYA perhaps unless there are exceptions.

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  • Jim_Harman
    Jim_Harman Quicken Windows Subscription SuperUser ✭✭✭✭✭
    edited January 11

    The example does cover the case @GA Hiker raises, however: buy on 7/15/24 and sell on 7/15/25 is short term.

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