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

To: drsvelte who wrote (330)	12/28/1997 11:31:00 AM
From: Colin Cody	Respond to of 5810

<<Dec 1, you BUY 1,000 shares of INTC at $81 <<Dec 2, you BUY another 1,000 shares of INTC $78 <<Dec 3, you SELL 1,000 shares of INTC $76 . <<Iin this case we have a sale of the $81 shares for a $5 loss. The <<wash sale rule takes that loss and adds it to the $78 stock for a <<basis of $83. >Suppose now you SELL the remaining 1,000 shares of INTC @ $75. >If your cost basis on those shares is $83, am I right to conclude you >can report a loss of $8 per share on the 1,000 shares?? Yes that's exactly what happens. You recognize an $8 loss when you get out of INTO by selling the rest of them. (subject of course to all other restrictions on taking a loss) . Colin