i have responded to your questions
see bold
To: +Labrador (3 )
From: +Madhur Saturday, Mar 27 1999 5:02PM ET
Reply # of 10
Hi,
>1. wash sales -- adjusting the basis in the new shares purchased?
Can you give an example?
if you sell a security at a loss, and within 30 days before or after, you purchased the security, the loss is disallowed. your basis in the acquired shares is increased by the disallowed loss. See IRC Section 1091.
>2. mutual funds (average cost, and other choices for determining basis)?
At this point StockTax is designed for trading only full amounts of shares,
not the 1/1000th fractions usually used in Mutual Funds.
Can you send us a sample of what you are looking for here?
Buy 100 shares of Fidelity Magellan at $100, and the next day buy another 100 shares at $110. Next year, sell 100 shares. Several ways to figure out basis. FIFO, average cost. average cost has two methods, single-category or double-entry. See, for example Treas. Reg. Section 1.1012-1(e).
>3. how does it account for stock basis with sales of portions of your position? does it use first in, first out? can it handle specific identification?
Yes, first in, first out, see an earlier response for an example at:
Message 8562397
>4. bonds? original issue discount and/or market discount adjustments?
No
>5. futures or options?
No
>6. return of capital dividends that reduce a stocks basis?
Can you give an example?
Corporation pays a dividend in excess of its earnings (earnings and profits). Since distribution in excess of earnings, it is a non-taxable return of capital. This occurred with many REIT this year, Laser Mortgage Management, for example. Lyondell Petrochemical in the past, many others
StockTax is designed mainly for actual short-term "Stock" trading...
what do you mean "actual"?
Cheers,
Burkhard (Madhur) Eichberger
(Professional Software Solutions)
pss@pobox.com
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