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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Kaye Thomas who wrote (2246)	7/3/1999 2:03:00 PM
From: Spots	Respond to of 5810

>>I never make plugs, only public service announcements LOL - Ok, thanks for taking the time to respond WITHOUT plugging your book <G>. Spots

To: Kaye Thomas who wrote (2246)	7/5/1999 11:20:00 AM
From: Ditchdigger	Read Replies (1) \| Respond to of 5810

Kaye, from your site(which is great-thanks) "Example: Some time ago you bought 80 shares of XYZ at $50. The stock has declined to $30, and you sell it to take the loss deduction. But then you see some good news on XYZ and buy it back for $32, less than 31 days after the sale. You can't deduct your loss of $20 per share. But you add $20 per share to the basis of your replacement shares. Those shares have a basis of $52 per share: the $32 you paid, plus the $20 wash sale adjustment. In other words, you're treated as if you bought the shares for $52. If you end up selling them for $55, you'll only report $3 per share of gain. And if you sell them for $32 (the same price you paid to buy them), you'll report a loss of $20 per share. .................................. and if you sell them at a less than $32(ex.$30) you'll then report a loss of $22? I guess my question, as foolish as it may sound is,when a series of trades in an identical stock is completed with a final sale of all shares(all in the series less than 31 days),which may have included wash sales..does the final sale(with no buys after it sooner than 31 days) always fully adjusted to account for the wash sales? Can you ever lose the carry over adjustment?. example-a weeks worth of trading. day1-buy 1 sh XYZ at $10 day2 sell 1 sh XYZ at $9 ($1 loss/wash sale due to day3 purchase) day3 buy 1 sh XYZ at $10 (adjusted basis-$11,$1 carried from previous wash sale) day4 sell 1 sh XYZ at $5 and don't repurchase any XYZ stock before 31 days or longer final loss can be deducted and would be $6 This stuff confuses the heck out of me<g>..is this correct? In the end you always get the deduction for carried over losses on previous wash sales? TIA,DD(hope this makes sense,I confuse myself the more I think about it<g>)