"Jerohm" <jDrEmLoEhTrE[at]snet.net> wrote:

- quote -

I assume you didn't designate the 5/1/2004 shares as the
ones being sold, which would have avoided the wash sale rule
entirely (but subjected you to short-term capital gains tax
on $500). So the shares are presumed to be sold FIFO, so
you sold the 1/1/2004 shares.

- quote -

5/1/2004

- quote -

You add the disallowed loss to the original basis, so it's
$8,000 + $1,500 = $9,500.

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

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The sale of 5/2 is a wash sale and the loss of $1,500 is
added to the $8,000 basis of the 5/1 purchase for a total
of $9,500 and its purchase date is changed to 1/1.

Because there would be no tax consequence, if the final sale
is in the same year, 2004, the wash sale and adjutments can
be ignored and the two transactions entered as short term
sales on Schedule D-1 ed

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"Jerohm" <jDrEmLoEhTrE[at]snet.net> writes:

- quote -

Absent any other info, FIFO requires that you are deemed as
selling the 1/1 shares. You'll have an unadjusted $1,500
loss on them. The wash sale will wipe out that loss, of
course. The $1,500 disallowed loss gets added to the basis
of the 5/1 stock (what else could it be added to -- there's
no other stock) and the holding period gets tacked on to the
5/1 stock. So the effective purchase date is 1/1/04 and the
effective basis is $9,500.

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

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"Jerohm" <jDrEmLoEhTrE[at]snet.net> wrote:

- quote -

1/1/2004

- quote -

$9,500 ($8,000 plus the $1,500 deferred loss)

--
Phil Marti
Clarksburg, MD

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Given this scenario:

BOT: 1000 ABCD 01/01/2004 $10,000.00

BOT: 1000 ABCD 05/01/2004 $8,000,00

SLD: 1000 ABCD 05/02/2004 $8,500.00

With respect to the Wash rule, when the > > FINAL<< 1000
shares are sold (and ASSUMING that NO OTHER transactions for
ABCD occur within 31 days plus/minus), what is

a) the reported Purchase Date
b) the reported Basis Amount

Thanks alot...

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