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Financial Planning / Tax Strategies
|Subject: Re: Wash Sale||Date: 10/11/2012 8:26 PM|
|Author: TMFPMarti||Number: 116784 of 121563|
I bought 130 shrs. of a position at Broker A on 01/04, and sold all 130 shrs. for a loss on 03/17 … still at Broker A.
Forgetting to check the date, I bought 270 shrs. of the same position at Broker B on 04/12.
The result of the wash sale is that you have two lots:
Lot A: 130 shares, purchase date 1/4, basis whatever you paid for them plus the loss from the 3/17 sale.
Lot B: 140 shares, purchase date 4/12, basis whatever you paid for them.
Then on 05/31, I decided it was too risky and sold off half … 135 shrs.
Since you didn't specify otherwise, we apply FIFO. You sold all of Lot A and 5 shares of Lot B. Your remaining shares are all Lot B.
What is the best way to report this on the 2011 Schedule D?
Report just two sales. The 3/17 sale you show as a wash sale. The 5/31 sale you use "various" as the purchase date.
And since I sold the remaining 135 shrs. in 2012, will they just be reported normally?
Yes, on your 2012 Schedule D.
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