I think you're getting confused with wash sale rules. This
applies to sales at a loss when these shares or similar
shares are bought again. If your broker sold the shares (the
exact lot) which you bought in March, you do have a long
term gain. The newly purchased shares will have another buy
date and holding period. If you elect to use the first in -
first out method (standard, when you don't tell the broker
which shares to sell), you still have the same long term
status. The first shares in were those bought in March.

Linda Dorfmont E.A., CFP, CSA

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"Cai" <cahzhao[at]yahoo.com> wrote:

- quote -

I don't know what your thinking is here. Your sale and your
purchase have nothing to do with each other. There is no
wash sale, you had a GAIN.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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cahzhao[at]yahoo.com (Cai) writes:

- quote -

Must have been that garlic pizza you ate.

You're probably thinking of the wash sale rule, which defers
your loss if you sell at a loss and repurchase the same
stock within 30 days (oversimplified). The only thing
remotely related to your impression is the adjustment of the
holding period when the wash sale rule applies.

- quote -

If you didn't specify otherwise, you sold your oldest
shares. Their holding period dates back to 2002, and your
gain is long-term.

Had the sale resulted in a loss rather than a gain, the wash
sale rule would apply, but since it didn't, that's a
different ketlle of colored horses. Or something like that.

Phil Marti
Clarksburg, MD

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cahzhao[at]yahoo.com (Cai) writes:

- quote -

As long as you're not holding an offsetting position (like a
short of the same stock elsewhere, or a put, or possible a
short call) that's not true.

- quote -

Sounds like you're worried about wash sale treatment, which
(a) doesn't apply here because the wash sale rules only
apply to losses and you have a gain, and (b) acts to push
things into long-term rather than pull things out of
long-term

- quote -

Yes.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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"Cai" <cahzhao[at]yahoo.com> wrote

- quote -

Your first sale IS for a long-term gain. Report that
transaction on Schedule D.

The "30 day" rule you seem to be confused about limits
losses on stocks sold when they get repurchased within 30
days.

Since you sold for a gain, that rule doesn't apply.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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cahzhao[at]yahoo.com (Cai) writes:

- quote -

The 1000 shares produced a long term gain. If you were to
have sold the 500, you now hold, in less than one year, you
would have a short term gain on those 500 shares.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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Hello,

Somehow I have an impression that if I buy back a stock XYZ
within 30 days, then even if I had hold XYZ for more than
one year, it cannot be regarded as long-term. For example,

1000 Sh. XYZ bought on 03/31/02, sold on 10/06/04, gain +656.88
500 Sh. XYZ bought on 09/30/04, still holding

Note that my first 1000 shares has been held for more than
one year, but I bought another 500 shares on 09/30/04 which
is within 30 days of 10/06/04. Can I still regard my first
1000 shares as long-term to have the tax benefit?

Thank you!

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