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I own 2700 shares of JDSU ....cost basis somthing like $40 buck's...Bought last sept.....recently ive been going on margin and picking up 1500 shares @ lets say 100 getting 3pts and dumping the same amount of shares @ 103 ...On my tax return do I just claim 1500 x 3...With a cost basis of 100 or do the orginal shares and cost basis come into play

First the easy part. The fact that you're buying on margin doesn't matter in answering this question. For purposes of gain and loss calculation, margin and non-margin shares act the same.

Since you're asking the question, and assuming all these shares are in the same account, you've been selling the oldest shares you owned. Since those appear to have a $40 basis, there's no need to worry about wash sales, since it looks like everything has so far been sold at a profit. However the profit may be a lot more than you thought it was.

You can identify the shares you're selling if you do it at the time of sale and get confirmation. You can read about how to do it in the FAQ. Absent this specific identification, you're stuck with FIFO.

Phil Marti
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