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Author: sepac Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: Wash or Loss? Date: 2/15/1999 1:53 PM
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Had 0 (zero) shares of L on 8/23/98
Bought 2500 L for $10000 on 8/24/98
Bought 2500 L for $8300 on 8/25/98
Sold 2500 L for $8500 on 11/3/98
Bought 1000 L for $2800 on 11/4/98
Sold 3500 L for $10700 on 11/18/98
Thus leaving me with 0 (zero) shares of L. I have not taken any position in L since the 11/18/98 sell.

Overall I have a $1900 loss here. Can I take the entire loss or is part of it a wash?

How do I report it on Sch. D?
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Author: TheBadger Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10255 of 121114
Subject: Re: Wash or Loss? Date: 2/15/1999 2:18 PM
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Report it as three buy/sells. The full $1900 loss is potentially deductible depending on your gains & losses in other securities, if any.

There is NO net wash sale here because, whenthe day was done, you net position in this security is zero shares.



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Author: DowDanny Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10256 of 121114
Subject: Re: Wash or Loss? Date: 2/15/1999 2:21 PM
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>> Sold 3500 L for $10700 on 11/18/98
Thus leaving me with 0 (zero) shares of L. I have not taken any position in L since the 11/18/98 sell.
<<


OK, you've closed this position completely.

>> Overall I have a $1900 loss here. Can I take the entire loss or is part of it a wash? <<

You've answered your own question... since the position is closed, you have no wash-sale on the last (3500 share) transaction. Depending on your share indentification, there may have been one on the sale of 2500 shares on 11/3. Technically, since all of the transaction were "short term", there will be no difference at the end. But to be extra careful you'll have to break up the first sale into a sale, plus a "wash" on the 1000 shares you replaced.

>> How do I report it on Sch. D? <<

Hmm... Under Part I ( short-term )


Date acquired Date Sold Sales Price Cost basis Gain (or Loss)

Stock A 8/24/98 11/3/98 $5100 $6000 ($900)
Stock A 8/24/98 11/3/98 $3400 $4000 Wash-Sale
Stock A various 11/18/98 $10700 $11700 ($1000)



As you know the $11700 cost basis is $8300 from buy#2, $2800 from buy#3 and $600 from the disallowed sale #1. {you replaced 1000 of the 2500 shares, so disallowed 2/5 of the $1500 loss on that sale)

Phew !

- Danny

I think

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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: 10282 of 121114
Subject: Re: Wash or Loss? Date: 2/15/1999 7:25 PM
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sepac writes (in part):

Thus leaving me with 0 (zero) shares of L. I have not taken any position in L since the 11/18/98 sell.

Overall I have a $1900 loss here. Can I take the entire loss or is part of it a wash?


I reply:

As pointed out by TMFTaxes in some recent posts, both may be correct. You can take the entire $1900 loss even though some of the early sales were washes, because you have completely closed out your position and stayed out for more than 30 days. Technically, the loss on 1000 shares of the November 3 sale was a wash (assuming you use FIFO; if you specifically identified the shares sold as those you purchased on August 25, you had a gain, and so no wash sale), and should be reported as such, but in practice there's no reason to since the IRS seems not to care and you get to realize the deferred portion of the loss by virtue of the November 18 sale of the shares purchased (with their increased basis) on Novembver 4. --Bob

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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10345 of 121114
Subject: Re: Wash or Loss? Date: 2/16/1999 3:07 AM
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[[Had 0 (zero) shares of L on 8/23/98
Bought 2500 L for $10000 on 8/24/98
Bought 2500 L for $8300 on 8/25/98
Sold 2500 L for $8500 on 11/3/98
Bought 1000 L for $2800 on 11/4/98
Sold 3500 L for $10700 on 11/18/98
Thus leaving me with 0 (zero) shares of L. I have not taken any position in L
since the 11/18/98 sell.

Overall I have a $1900 loss here. Can I take the entire loss or is part of it a
wash?]]

It doesn't look like a wash sale to me. You don't have any "open" position in the shares, so it appears that the loss is certain, and not subject to the wash sale rules. You can read more about the wash sale rules in the Taxes FAQ area. Check it out.

[[ How do I report it on Sch. D?]]

Basically just like you have done here...sale by sale...line by line.

TMF Taxes
Roy

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