Ramin,
>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?
Not 100% technically correct, but for practical purposes YES you are correct.
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>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?
No you are not correct.
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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?
You have a $21,000 short-term capital loss. I suggest your conversation with the IRS was not communicated between you with a full understanding of what you had to say. Additionally the IRS does not normally answer hypothetical questions, if this was presented as such...
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Colin |
