给大家提醒下cover short tax loss是跟着settle date的

For most purposes, the tax law uses the trade date for both purchases and sales. For example, if you sell stock on December 31, you’ll report the gain or loss that year, even though the transaction will settle in January.

but for short positions:

Please keep in mind, for the tax loss on a short position to be deemed a realized loss in 2022 it must SETTLE by year end. If it does not settle by year end then the realized loss will be a 2023 tax loss.
If you are within the last 2 days of year end and still want to close the short for tax purposes in 2022 at a loss then discuss a potential cash settle with your broker.
No matter when you are closing out long or short positions at a loss, always be mindful of the various tax adjustments that could disallow that loss for tax purposes (wash sales / straddles / constructive sales / etc...).
Happy and Healthy Holiday Season!

Today I learnt.