[unrealized gains] is just a dream, [Delivery] profits count.

Recently, discussions about overseas investment returns have been increasing. A common misconception is that many people think it is calculated based on the unrealized gains of the total assets in the account at the end of the year. However, that is not the case; the core is to look at the "Delivery gains and losses", which are the profits you actually receive after selling.

It can be understood this way: as long as the assets are still in the account, no matter how much is shown on the books, it is still just "paper wealth" and does not incur current tax liabilities. Only when you press the "sell" button and convert the assets into cash will this portion of the profit be officially recorded.
This introduces an important annual planning idea. If a profit is realized during the year through a selling operation, but before the end of the year (before December 31), this cash is used to buy new stocks or assets, then from the perspective of annual settlement, this cash has once again turned back into "goods". In this way, the realized profit of the year can be "hedged" by the newly purchased assets, thereby reasonably deferring the tax liability to the future.

Therefore, for investors, when reviewing at the end of the year, it is not enough to just look at the total assets; you should also carefully check the "sell" records for the entire year. This is directly related to your annual tax arrangements.

At the end of the year, will you adjust your positions for tax planning? How do you balance this operation with a long-term holding strategy?

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This does not constitute investment advice.

#Tax Declaration