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Author: sanjubooty Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121338  
Subject: Schedule D and reporting transactions: Date: 2/22/2000 5:00 PM
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Hi

People might have seen the Capital Gains Report in Quicken. Well, in that, the lot is broken into separate lots if bought or sold on different days.

Can anyone advice that should we show the selling price in "grouped" lots even if they were bought on separate occasions, and show the amount similar to what is shown in the 1099-B,

or it is OK to show separate, what IRS wants is that the total selling price on 1099-B and Scd D should match.

For Ex. I buy STOCK A on 01/15/99 100 @ 30 and on 01/31/99 150 @ 25

I sell on 02/15/99 the complete 250 @ 50 in one lot and pay $100 as commission. Now this means the 1099-B would show the Sale price as 250*50 - 100 = $12,400

My cost was $3000+100=$3100 & $3750+100=$3850.

So should I show this as:

250 sh STOCK A various 02/15/99 12400 6950 +5450

or

100 sh STOCK A 01/15/99 02/15/99 4900 3100 +1800
150 sh STOCK A 01/31/99 02/15/99 7500 3850 +3650

Please advise

Sanjubooty
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Author: sanjubooty Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29631 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/22/2000 5:41 PM
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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,

Sanjubooty


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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29640 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/22/2000 6:04 PM
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<< For Ex. I buy STOCK A on 01/15/99 100 @ 30 and on 01/31/99 150 @ 25

I sell on 02/15/99 the complete 250 @ 50 in one lot and pay $100 as commission. Now this means the 1099-B would show the Sale price as 250*50 - 100 = $12,400

My cost was $3000+100=$3100 & $3750+100=$3850.

So should I show this as:

250 sh STOCK A various 02/15/99 12400 6950 +5450 >>

That's the one. One line per sale (unless it's a wash or split between long- and short-term).

Phil Marti

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29655 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/22/2000 8:43 PM
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<< 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) >>

There is no wash sale here. The replacement shares were acquired more than 30 days after the sale.

In a real wash sale, you still report the sale on one line and the wash adjustment on the line below, even if less than the entire loss is "washed."

Phil Marti

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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29663 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/22/2000 9:53 PM
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pmarti writes (in part):

There is no wash sale here. The replacement shares were acquired more than 30 days after the sale.

I reply:

If I'm reading the original post correctly (a matter left in some doubt by the absence of column headings), the replacement shares were purchased on February 16, 1999, only one day after the original shares (which were purchased on January 15) were sold, and then sold on February 28. In that case, there is indeed a wash sale. --Bob

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29676 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/23/2000 4:21 AM
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<< 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) >>

Please ignore my previous response to this. I swear I looked at it several times, and mistakenly thought that the first sale was 1/15 and the replacement purchase 2/16. I hope I didn't set you back too much, and major thanks to Bob for catching it.

The Schedule D entries quoted above are correct for the situation.

Phil Marti

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Author: sanjubooty Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29685 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/23/2000 8:13 AM
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Phil

Thankx for your reply to the matter. But my question was that as the was sale in the above was only for 150 shares and I now buy 500 shares, so should I have 2 entries,

1. Showing the 150 shares adjsuted cost basis
2. Showing 350 shares without adjusted cost basis,

or

Can I club into one entry of 500 shares and putting the $1500 of adjusted cost basis and not splititng the transaaction.

Sanjubooty

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Author: volchris Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29707 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/23/2000 10:42 AM
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That's the one. One line per sale (unless it's a wash or split between long- and short-term).
Phil Marti


Is this a must, or can you choose to list every purchase and sale separately (this method makes it easier for me to review past year's)?

volchris

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29728 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/23/2000 12:37 PM
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<< One line per sale (unless it's a wash or split between long- and short-term).
Phil Marti

Is this a must, or can you choose to list every purchase and sale separately (this method makes it easier for me to review past year's)? >>

If it's easier for you, I don't think the IRS would object.

Phil Marti

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29729 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/23/2000 12:40 PM
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<< Thankx for your reply to the matter. But my question was that as the was sale in the above was only for 150 shares and I now buy 500 shares, so should I have 2 entries,

1. Showing the 150 shares adjsuted cost basis
2. Showing 350 shares without adjusted cost basis,

or

Can I club into one entry of 500 shares and putting the $1500 of adjusted cost basis and not splititng the transaaction. >>

You don't report anything on the replacement shares until you sell them, and then they look just like any other sale. The only time you report the wash sale is when you sell the original shares.

If this doesn't clear it up for you, please repost with the purchase and sale information you're concerned about.

Phil Marti

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Author: sanjubooty Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29757 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/23/2000 4:45 PM
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Phil

Here I am asking the question again. Imagine that I have sold the shares I bought which have an adjusted cost basis due to wash sale in the earlier trnasaction.

Now here are the numbers:

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
                  (Cost = 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
                  (Cost = 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 2 entries for STOCK A

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

My question is, Is reporting using scenario #1 better o #2 better. If we want the sell amounts same as the 1099-B then the scenario #1 can be used, but for ease of understanding where the cost basis is applied #2 explains best.

Please reply

Thanks

Sanjubooty


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Author: sanjubooty Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29758 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/23/2000 4:48 PM
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<<<Sorry I am reposting it below, as the 1099-B values were wrong in the previous post>>>>
________________________________________________________

Phil

Here I am asking the question again. Imagine that I have sold the shares I bought which 
have an adjusted cost basis due to wash sale in the earlier trnasaction.

Now here are the numbers:

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
                  (Cost = 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
                  (Cost = 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 2 entries for STOCK A

1. STOCK A   150    SELL    02/15/99    3500  *******corrected amount here********
2. STOCK A   500    SELL    02/28/99   10000

My question is, Is reporting using scenario #1 better o #2 better. If we want the sell amounts same as the 1099-B then the scenario #1 can be used, but for ease of understanding where the cost basis is applied #2 explains best.

Please reply

Thanks

Sanjubooty


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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29766 of 121338
Subject: Re: Schedule D and reporting transactions: Date: 2/23/2000 7:32 PM
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<< 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
(Cost = 5000+ 1500(from Wash Sale)) >>

This is the way to report it. You don't need to separate the replacement shares that were affected by the wash from those that weren't since they were all sold at the same time. (If it makes more sense to you to separate them, I don't see any reason why you can't. Just make sure your report the total sale as shown on the 1099-B.

Phil Marti

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