Phil et al.,

Please disregard my second post in this thread asking for
more clarification. I just read A.G. Kalman's reply and
that answered it for me.

Thanks to all!

RD

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philmarti[at]aol.com (Phil Marti) wrote:
- quote -

Phil,

Thanks for the reply. I'm sorry I didn't make myself clear
so let me try again.

I realize that I can use "various" as my purchase date and I
will do so. Let's say that I sold 20 different lots of the
same stock in one sale. Of these 20 different lots, I have
10 that are a clear loss, 9 that are a clear gain, and this
other one that I'm not sure what to do with. All of the
lots qualify for long term treatment, by the way.

Assuming I don't make any additional stock sales in 2004, I
would have two entries on schedule D. One, an aggregate
entry representing my long term capital losses, the second,
an aggregate entry representing my long term capital gains.

Let's ask the questions this way:

A. Assuming the broker reports gross proceeds, is this lot
(basis $24.66, gross sales price per share $24.69, net
sales price per share $24.60) a capital gain or a capital
loss?
B. Assuming the broker reports net proceeds, is this lot a
capital gain or a capital loss?

Sorry I didn't make my question clear first time around, and
thanks for all your help!!!

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tmf3141594[at]hotmail.com (Ralph Diantonio) wrote:

- quote -

It's a loss.

- quote -

Transaction costs should always be added to cost basis and
subtracted from proceeds when filling out Schedule D.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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Ralph Diantonio wrote:

- quote -

The following assumes that your sale of the ESPP stock was a
qualifying disposition.

When a broker reports gross proceeds, the t/p reports gross
proceeds and adds any cost of sale to the cost basis of the
stock. When a broker reports net proceeds, no adjustment is
required. The net result (gain or loss) will be the same.
You had a long-term capital loss on the ESPP shares of 6
cents/share. You either sold them at $24.69 and your cost
was $24.75 ($24.66 + .09) or you sold them at $24.60 ($24.69
- .09) and your cost was $24.66. The 1099-B will tell you
whether the broker is reporting gross or net.

--
Alan
http://taxtopics.net

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tmf3141594[at]hotmail.com (Ralph Diantonio) writes:

- quote -

No. You separate between long-term and short-term, but you
can use "various" as your purchase date. See the Schedule D
instructions.

If your broker reports proceeds net of commissions you don't
have to make any basis adjustments. If the broker reports
gross proceeds add the sales charges to your basis.

Phil Marti
Topeka, KS

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I bought a lot of stock several years ago for $24.66 per
share. There were no costs associated with the purchase of
the stock because it was bought within an employee stock
purchase plan.

I sold this lot, along with about 15 other lots of the same
stock, this month (January 2004). The broker who sold it
for me charged approximately $40 in transaction related
costs (commission, SEC fee, etc.).

The gross sales price for the stock was $24.69 per share.
The net sales price (after apportioning the approximately
$40 in fees across the total number of shares) for the stock
was $24.60 per share.

I believe I have to segregate the various lots into gains
and losses on my 2004 Schedule D. Is this a gain or a loss?
Does it depend on how the broker reports the sale to me (I
understand from reading the instructions to schedule D that
the broker can either report gross or net proceeds on the
1099.) I scanned the schedule D instructions without
finding the answer to my question.

Thanks!

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