December 18, 2017
All Tax Articles

For many decades, the rule when selling stocks on the market was that “settlement” — actual completion of the sale — would happen in three days. This rule came into place long before there was computerized trading and electronic delivery of shares.

Since September 5, 2017, settlement of a share purchase or sale now takes place in two business days. This change applies to markets in both Canada and the U.S.

This affects year-end selling done for tax purposes. If you are selling shares to trigger a capital loss to use for 2017, or to trigger a capital gain to use up other losses, make sure to finalize your trade no later than December 27, 2017. Since December 28 and 29 are Thursday-Friday, your trade will then “settle” on December 29. As the following two dates are Saturday and Sunday, a trade on December 28 will not settle until January 1, and will not count for your 2017 tax return.


This letter summarizes recent tax developments and tax planning opportunities from a third-party affiliate; however, we recommend that you consult with an expert before embarking on any of the suggestions contained in this blog post, which are appropriate to your own specific requirements. Please feel free to get in touch with Lee & Sharpe to discuss anything detailed above, we would be pleased to help.
Sandy J. Lee

Hello my name is Sandy Lee, I am a partner at Lee & Sharpe.

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