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Subject Author Date
wash sale tj88 02-03-2008
| `--> Re: wash sale removeps-groups...02-04-2008
---> Re: wash sale Rich Carreiro02-10-2008
---> Re: wash sale s_pickle200102-13-2008
Posted by tj88 on February 3, 2008, 2:26 pm
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 I need to determine if the following 2007 transactions are considered wash
sales:

(11/01 Bought 755 sh HOV for $8186)
11/09 Sold 755 sh HOV for $6649

(11/20 Bought 750 sh HOV for $6347)
11/21 Sold 750 sh HOV for $5600

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Posted by joetaxpayer on February 3, 2008, 3:08 pm
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tj88 wrote:

> I need to determine if the following 2007 transactions are considered wash
> sales:
>
> (11/01 Bought 755 sh HOV for $8186)
> 11/09 Sold 755 sh HOV for $6649
>
> (11/20 Bought 750 sh HOV for $6347)
> 11/21 Sold 750 sh HOV for $5600

Did you buy any back before 12/21? If not, you have no wash sale, you
sold both sets of shares you bought.
JOE

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by removeps-groups@yahoo.com on February 4, 2008, 4:49 pm
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> > (11/01 Bought 755 sh HOV for $8186)
> > 11/09 Sold 755 sh HOV for $6649
>
> > (11/20 Bought 750 sh HOV for $6347)
> > 11/21 Sold 750 sh HOV for $5600
>
> Did you buy any back before 12/21? If not, you have no wash sale, you
> sold both sets of shares you bought.

True, but does he have to report the wash sale regardless? Would the
IRS software would flag his return for manual analysis if he did not?

On my return I would probably write "755 HOV (wash)" and take the loss
for only 5 shares (or maybe zero gain/loss for simplicity), but the
disallowed loss is carried over and added to the cost basis of the
second transaction which is "750 HOV (has wash carryover)" meaning
that the cost basis of the 750 HOV is something like
6347+(8186-6649)=7884.

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Rich Carreiro on February 10, 2008, 8:22 am
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> I need to determine if the following 2007 transactions are considered wash
> sales:
>
> (11/01 Bought 755 sh HOV for $8186)
> 11/09 Sold 755 sh HOV for $6649
>
> (11/20 Bought 750 sh HOV for $6347)

This makes 750 shares of the 11/9 sale a wash sale.

> 11/21 Sold 750 sh HOV for $5600

So, the 11/9 sale is the only wash sale. The loss on 750
of those shares is deferred and added to the basis of the 11/20
purchase.

Now, if after the 11/21 sale you stayed out of the stock
for over 30 days (and then didn't do any wash sales in the
closing days of December), you can in effect ignore the
wash sale rule and report the transactions "normally".
This is technically wrong, but will give the same gain/loss/total tax
bottom line as doing it correctly.

--
Rich Carreiro rlc-news@rlcarr.com

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by s_pickle2001 on February 13, 2008, 12:10 pm
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> > I need to determine if the following 2007 transactions are consideredwash
> > sales:
>
> > (11/01 Bought 755 sh HOV for $8186)
> > 11/09 Sold 755 sh HOV for $6649
>
> > (11/20 Bought 750 sh HOV for $6347)
>
> This makes 750 shares of the 11/9saleawashsale.
>
> > 11/21 Sold 750 sh HOV for $5600
>
> So, the 11/9saleis the onlywashsale.  The loss on 750
> of those shares is deferred and added to the basis of the 11/20
> purchase.
>
> Now, if after the 11/21saleyou stayed out of the stock
> for over 30 days (and then didn't do anywashsales in the
> closing days of December), you can in effect ignore thewashsalerule and report
the transactions "normally".
> This is technically wrong, but will give the same gain/loss/total tax
> bottom line as doing it correctly.

Submitting a false return is a crime even if it does not result in tax
deficiency.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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