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Strategies & Market Trends : Roth IRA ideas -- Ignore unavailable to you. Want to Upgrade?

To: Martin Wormser who wrote (346)	7/20/1999 1:58:00 AM
From: Gary	Read Replies (2) \| Respond to of 388

Martin The sale has no tax consequence since the subsequent purchase made it a wash sale and not deductible. You started with an original cost basis of $8996. The sale produced a loss of $4,689 ($355 proceed less $5,044 cost) which is disallowed due to the repurchase within 30 days ("2nd stupid thing"). At that point your cost is $8,641($8,996-5,044+4,689)to which you add the cost of the next transaction to arrive at your total cost for the shares held. You have to report the sale on your tax return next year and indicate it was a wash sale and thus breakeven for tax purposes. You should probably read the instructions for schedule D as they apply to this type of transaction. Kind of early in the morning. Hope I explained this ok. Regards, Gary