[account unrealized gains are just a dream, Delivery profits are what 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, this is not the case; the core focus is on "Delivery gains and losses," which refers to the profits you actually receive after selling.

This can be understood as follows: As long as the assets are still in the account, no matter how much is gained on paper, 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 does this portion of the profit get officially recorded.

This introduces an important annual planning idea. If a profit is realized through selling operations within the year, but by the end of the year (before December 31), this cash is used to purchase new stocks or assets, then from the perspective of annual settlement, this cash becomes "goods" again. In this way, the realized profits for the year can be "hedged" by the newly purchased assets, thereby reasonably deferring tax liabilities to the future.

Therefore, for investors, when reviewing at the end of the year, one should not only look at the total asset amount, but should also carefully tally up the "sell" records for the entire year. This directly relates to your annual tax arrangements.

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

Continuously track global market and strategy dynamics, welcome to follow.

Not investment advice.

#Tax Declaration