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<< 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
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