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smfish writes:

Perhaps you can check my calculations on the Wash Sale (I hope, my first and
last wash sale). I purchased stock at various times in 1999, for a total of 230
shares at a total cost of $23,272.74. On 09-20-99, I sold 230 shares for
$19,057.99, for a $4,214.76 loss. Bought back 100 shares on 09-22-99 for
$9,044.50. one hundred shares of two hundred thirty shares is .443%, so .566%
of 4214.76 (loss) is $2,385.55, which I guess is my loss? Remainder of the loss,
4,214.76 minus 2,385.55 is $1,829.21, which I guess is added to the cost of 100
shares, $1,829.21 + 9,044.50 = 10,873.71, for my new cost basis on 100 shares.

I reply:

You're correct that you have a wash sale, but you can't divvy up the basis of the
underlying shares in the way you describe. You need to calculate for each separate
purchase whether you had a gain or a loss. Once you've located the first 100 shares
on which you sustained a loss, you can stop. The loss on those 100 shares is
disallowed and added to the basis of the shares you purchased on September 22.
You may recognize your remaining loss.

This analysis assumes that you purchased no shares on or after August 21, 1999. If
this assumption is wrong, than you may have had another wash sale. If you post back
with dates and figures, someone may be willing to give you more detailed help. If you
do, please format the figures to be easily readable. Thanks. --Bob

I think shat Bob is saying is that the problem is that you can't use profitable trades to offset losses on the same date. I think you have to take all the shares on which you had a gain and report them (you can probably make this one trade with "various" as purchase date). Then the remaining total loss is pro-rata on a share basis versus the 100 Replacement shares to determine your Wash Sale, adjustment, and basis and date change on the 100 shares. Since they are all losses you can bunch them together with "various" as purchase dates.
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