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Hello,

Just got a 1099-B with a check attached for selling a loser. IMO, I got everything correct how I'll have to report the loss on the 2008 Sch.D, but to feel more confident I came here to ask a few questions and to ask to review my calculations. I sold the entire DRIP holding of 92.65 shares.

1. When does my short-term start? The sale occured on July 3,2008. I have invested on July 3, 2007 and the next one on July 6,2007. IMO, investments on July 6, 2007 and later would be Short-term, and anything prior to 7/6/07 would be Long-term, meaning that 7/3/07 belongs to the LT 'camp'. Correct?

2.Sale side....
The 1099-B states proceeds of $2,056, but the check is $2,034 due to transaction fees. I'd like to confirm with you that I'm correct to use NET proceeds to calculate the average sale price: $2,034/92.65shares=$21.9536/share. And then use this price when splitting between ST and LT shares.

3.Purchase side....
I have to calculate the total amount spent on ST shares and do the same thing for LT shares. The total amount would include my cash investments + reinvested dividends + co.paid fees.
After (2) and (3) steps put this info on Sch.D and calculate ST and LT losses.
Sounds correct?

Thanks so much.
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