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Roy Lewis describes the 'phantom' sale/purchase for Jan 1, 2001, specly. the section "Getting the Super-Low Rates on Capital Assets Purchased Before 2001".
Are there restrictions as to when you sell the stock in order use the adjusted cost basis? If there is no restriction, it seems the new "date of purcahse" and CostBasis are as of 1/1/2001.
An example: if we bought 1000 XYZ at a CostBasis of $5,000 on 1/1/1994 and take (i.e., record) the super-long-term action as described dated 1/1/2001 (value on that date is $50 per share). If the stock is sold on 2/1/2001 for $51 per share, the capital gains is based on a short-term gain of $1 per share. If sold on 1/1/2002, it is long-term gain with the same cost basis of $50 per share.
I looked to find something in the 2 publications (550 and 540) referenced and could not. Does someone have info on where to look?
Also, when was this tax revision passed?
Thanks, Bob in Minnesota
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