Colin,
Your last set of statements:
Sixth, the sale of 500 shares at $90 results in another short term loss of $15,000 -- NO this is a $10,000 loss
Current Status if NO other transactions take place:
the short term capital gain ($20,000) is offset by the two short term capital losses of $15,000 each leaving a net loss $10,000 for the year - of which you can take $3,000 for '97 and carry the $7,000 loss forward.
NO your $20,000 gain offsets your $20,000 loss.
You have another $10,000 short-term capital loss
you hold 500 shares with a $90 basis
My comments:
I don't see a $10000 loss. It is a $20000 loss if the FIFO, with him still holding 500 shares @ 90. It is break even if the LIFO, with him holding 500 shares @ 110.
Ira |
