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And to add on to my last post:

What if the sale is a wash sale. Think that instead of the last example, I did not make a profit, I made a loss in one.

Now when I buy say 500 shares next time, I will have to adjust the cost basis of 150 shares, (on which I made lost last time). Now these 500 shares, do I show it as one lot, or show them as 150 (with adjsuted cost basis) and 350.

Here is an example (I have omitted commisions for ease):

150 STOCK A 01/15/99 02/15/99 3500 5000 -1500
wash sale +1500
500 STOCK A 02/16/99 02/28/99 10000 6500 +3500 (5000+1500 from Wash Sale)

or it should be like this:

150 STOCK A 01/15/99 02/15/99 3500 5000 -1500
wash sale +1500
150 STOCK A 02/16/99 02/28/99 3000 3000 0 (1500+1500 from Wash Sale)
350 STOCK A 02/16/99 02/28/99 7000 3500 +3500

NOTE: In my 1099-B there will be two entries for STOCK A

1. STOCK A 150 02/15/99 5000
2. STOCK A 500 02/28/99 10000

Anyone who can advise it would be great,

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