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Posted by Barry Margolin on April 13, 2008, 9:26 pm
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> 130.81.64.196:
>
> >
> >> In misc.taxes.moderated, Han wrote:
> >>
> >>>
> >>>So I sold with a gain that was much smaller because of the current
> >>>slump, and purchased into a Roth. For both 2007 and 2008. Since I
> >>>didn't have a loss, it is legal? <grin>
> >>
> >> This doesn't involve the emotional other issue. A gain, however
> >> small, is not a wash sale.
> >>
> > Thanks DF2 and Barry. That was my understanding too. Now I have to pay
> > estimated taxes on the gain, I think ...
> >
> Well, darn it. I thought I still had a gain on the sale of Magellan
> shares, but not apparently after all calculations done properly. It is a
> loss.
>
> So could you please recapitulate what my situation is now?
>
> These were mechanically 4 transfers from a single joint taxable account at
> Fidelity into 2 separate individual Roth IRA accounts with the same SS#s as
> on the joint account for 2007 and 2008 contributions for taxpayer and
> spouse.
>
> Joint account Magellan shares were bought over the years.
> Sold on 1/22/08 with a ~$450 loss
>
> Proceeds were transferred to Roth IRAs (spouse and me) for 2007 and 2008
> contributions.
> Purchased Magellan shares immediately using the Roth transferred proceeds.
> (yeah, maybe not so smart, but I'm hoping the investment will pay off
> eventually).
>
> Questions:
> I can or cannot report the loss for 2008 taxes?'
I don't think you can.
> The basis of these just purchased shares in the Roth accounts does not
> really matter, right?
Right.
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***
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