Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121567  
Subject: Re: Buying on margin Date: 7/28/2000 5:20 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
So your saying that it dosnt matter in this situation because the broker automaticly sells the oldest held stock..{unless I tell them elsewise}...Even though im thinking they cant..My reason for thinking that is because the orignal margin $ value is based on the oldest held stock.

Correct me if I'm wrong, but each of your shares has the same value to the broker as security for the margin loan. It doesn't matter what you paid for them.

Now if there's something in your margin agreement with the broker that somehow blocks those older shares from sale, and you can show that they were blocked at the time you thought you sold the new shares, you could be in business. I'll admit that I don't have first-hand experience with margins, but I don't think they work this way.

So come tax time I cant tell the IRS that certain stock..Identifiable by there tracking # was bought and sold for the short term..While tracking #'s representing stock bought 9 mo's ago are a long term play and were never intended to be sold only borrowed against.

You definitely cannot make the designation at the time you file your return. That answer won't change no matter how many different ways you ask it.

I don't understand these tracking numbers you mention. If they are somehow included in your sell order and the broker's sale confirmation and they identify specific shares, then you'd have satisfied specific identification.

TMF ExRO
Phil Marti
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

Disclaimer:
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.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement