Message Font: Serif | Sans-Serif
No. of Recommendations: 0
<< I'm not sure if a certain stock transaction I have is a Long Term gain or a Short Term gain because of when I aquired it. I purchased it twice. The first time was over a year ago. The second time was 10 months ago. I have since sold the position.

I have a small gain. I remember from last year that if I bought a stock more than once than under "Date Aquired" on Schedule D I was required to put down "Various". But in the example below do I put it under the Short Term section of Schedule D or the Long Term Section?

Is it considered under IRS rules as Long Term or Short Term? >>

Yes. You have a long-term gain/loss for the shares held long-term and a short-term gain/loss for the shares held short-term. It's two entries on the Schedule D. ("Various" requires the same classification of long or short-term.)

Let's hope the long-term was a winner, because if it's a loss and the short-term produced the gain, you won't get the advantage of the lower tax rate on long-term gains.

Phil Marti
Tax Preparer
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.