"Brant Hahn" <bhahn3[at]purdue.edu> plagiarized...
- quote -

You made an exact copy of my 2002-11-25 12:05:01 PST query!!
I would think you were browsing it and accidentally re-sent
it, but you replaced my "thanks, jt" with your "Thanks, B"!!

Glue together the below to find essentially the same answer:
http://groups.google.com/groups?q=cr...inancial-plan&
hl=en&lr=&ie=UTF-8&group=misc.invest.financial-plan&safe=off&
selm=be594162.0211251152.ed8cda0%40posting.google. com&rnum=2&filter=0

We seem to be covered well by google again - an essential
archive and reference tool. Well, I could give you the benefit
of my latest thoughts, since my words seem to be revered here...

I guess it's not too painful to go in and out of ultra shorts
if you are under a brokerage which has downloading ties to tax
software that you make use of. You may have to do the state
tax swizzle on your own.

Incidentally, taking this approach with turbotax I found what
I consider a bug, where answering questions logically can lead
to double counting deductions, and you can't query or zero out
the bogus one (except by deleting some of their work files).

"Brant Hahn" <bhahn3[at]purdue.edu> writes:

- quote -

And yet you'd still have precisely the same amount of
"paperwork".

- quote -

Nope. The IRS will get a record of the sale in a 1099-B.
You'll have to declare it on your Schedule D.

Now, the IRS will only know the amount of your _proceeds_
and it's up to you to supply them with the cost basis, but
you've still got to report it - win, lose or draw.


--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting

Whaddya think of ultra short bond funds as an adjunct to
money market funds? The interest rates seems attractive
and the share values hardly move...
http://biz.yahoo.com/p/tops/ub.html

Now one annoyance is the tax paperwork for capital gain.
But the gain may be zero if you play it right. See chart
http://finance.yahoo.com/q?s=FUSFX&d...m&l=on&z=m&q=l
where the crenelations may allow you to go in and out at
same value (using your money market fund when can't).

What if you buy and sell at same price - can you just skip
reporting it to IRS from a practical if not legal point of
view? I don't have easy reporting environment, where it
may be hard to look up the purchase dates (may be multiple
ones for cross-cutting purchase/sales) and net gain/loss=0.

Now one other US state tax question that at least applies
to short term bond funds. You have a choice of corp, federal,
and treasury bond funds. Fund company reports treasury and
usually seperately federal component "in case" these are
deductable from state tax. State tax forms usually mention
treasury but not federal interest deductability. Isn't this
governed by federal law and you can always deduct fed interest?
Or do I have to consult the illiterate, contradictory, not
online legalese of my own state regulations?

Thanks,
B