Rev. Rul. 93-84

Rev. Rul. 93-84

ISSUE

In what taxable year must a cash method taxpayer report the gain or loss realized from a year-end sale of stock or securities that are traded on an established securities market?

FACTS

A uses the cash receipts and disbursements method of accounting and files returns on a calendar year basis. For several years A held stock that is traded on the E Exchange, an established securities market. On December 31, 1992, A contacted a broker and placed a regular-way sale order on the stock. The broker executed the trade on the same day (the trade date). As permitted by the rules of the exchange, A delivered the stock certificates to the broker, and the broker delivered the proceeds of the sale to A, on January 8, 1993 (the settlement date).