O/T - wash sales. Snerd, you have to consider 'materiality' factor in wash sales. If the loss amount is not that significant, I would not bother with the wash sales rule.
But this is how it works:
Example #1: Larry Laundry buys 500 shares of ABC Corp. for $10,000
and sells them on June 5 for $3,000. On June 30, he buys 500 shares of
ABC again for $3,200. Since the stock was "bought back" within 30 days
of sale, the wash sale rules apply. Larry can't claim his $7,000 loss.
Instead, he must adjust his basis in the repurchased shares. His basis in his
"new" 500 shares is $10,200: the actual cost plus the $7,000 disallowed
loss.
fool.com
invest-faq.com
>>I'm doing my tax return, and it looks like I need to list every
trade.<<
We trade a lot, and it sure is a pain in the *ss to list all buy and sell of each transaction.
For me, this is how I will file. I will just print out my transaction history from Datek & Charles Schwab, and ATTACH this to my tax return.(IRS can see all the transaction details)
And on tax return, I will just write gross sales and cost amount. I sure ain't gonna write all my trading transactions over 200 of them.
Jon
PS - Oooops, Tony already posted this with exact same reference <g> |
