The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Specifying Stock 2||Date: 4/3/1999 5:38 PM|
|Author: PhotoPhool||Number: 13556 of 120448|
Thanks for the response! (Gary too.) I hadn't thought about the wash sale rule. But to tell you the truth, the short-term loss is so small, that it wouldn't much matter to me if I wasn't able to claim it. If I'm forced to use FIFO, however, the cost of this "little" mistake will be twice as much as I had originally thought. Not good. :-(
On the up side, if you're forced to use FIFO the mistake will not cost you any more than you'd have to pay eventually. You'd just have to pay the accumulated capital gains this year instead of in the future.
Thanks for the tip Bob. I found more information on FIFO and specific identification of stock at the Tax FAQ http://www.fool.com/school/taxes/taxes23.htm
I'm not a tax lawyer but here's my two cents worth. The circumstances of your trade mistake make it fairly obvious you were just correcting an error. And unless you're talking thousands of shares, it wouldn't be worth an auditor's time to contest the issue.
I'm not sure the wash rules apply here. They would apply if you had sold and repurchased. However, you bought and sold. So your original shares remained intact until the final sale.
Gary the PhotoPhool
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