In microsoft.public.money, Siva wrote:

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I don't find the 2004 IRS pub 550 yet. The 2003 version came out
late also.


http://www.irs.gov/pub/irs-pdf/i1040sd.pdf is the schedule D
instructions for 2004. Page D3 describes wash sales.

Each wash sale takes up two consecutive schedule D lines.


In at least one tax program, you download your schedule D info as
normal, and select a code that indicates it is a wash sale. That
automatically generates the second line on schedule D that cancels
out your loss.

I suspect you would have to manually increase the basis for a later
sale. I would try to remember it for later use when I sell at a
profit. I don't think that tax program remembers to look for such a
sale later, but I have not checked that out. I have successfully
avoided wash sales.

Gainskeeper is an online service that prepares schedule D data while
taking care of wash sales.

Most people would not even think about wash sales applying to a
mutual fund where the only thing that caused the wash sale was an
automatic reinvestment of the distributions.

Does anyone have ideas of how to track a wash sale transaction for a mutual
fund. The mutual fund is using single category method for the cost basis.