Collin, anyone:
Here is a question I asked IRS and a CPA, regarding the wash sale, and received two different answers.
Let's assume my very first stock transaction was in April 20, 1997. On this day, I bought and sold some shares of ABC, once, and realized a loss of $9,000. I hold no shares of this Company after this transaction. A few months later, say August 15, 1997, I bought and sold some shares of XYZ several times during the day, and each and every sale resulted in a loss. At the end of the day I hold no shares of XYZ Company and my total losses from this day's transactions add up to $12,000. I had no other transactions for the rest of the year.
Please correct me if I'm wrong:
1) My $9,000 loss is a capital loss: $3,000 for year 1997 and the remaining $6,000 to be deferred to later years. Correct?
2) My $12,000 loss is a wash sale. I own no shares of XYZ Company to add this loss to its cost, therefore, THIS $12,000 LOSS IS NOT A CAPITAL LOSS AND I CAN NOT DEFER IT TO LATER YEARS. Correct?
3) According to an employee at our local IRS branch, my total loss is only $9,000, where $6,000 can be deferred to later years. But, according to a CPA, my total loss is $21,000, where $18,000 can be deferred to later years. Who is right?
Thank you for your comments,
Ron |
