The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/i-bought-130-shrs-of-a-position-at-broker-a-on-30314443.aspx

Subject:  Re: Wash Sale Date:  10/11/2012  8:26 PM
Author:  TMFPMarti Number:  116784 of 121258

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.

Phil
Rule Your Retirement Home Fool
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us