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

To: Colin Cody who wrote (398)	1/6/1998 11:32:00 AM
From: Ira Player	Read Replies (1) \| Respond to of 5810

Colin, Your last set of statements: Sixth, the sale of 500 shares at $90 results in another short term loss of $15,000 -- NO this is a $10,000 loss Current Status if NO other transactions take place: the short term capital gain ($20,000) is offset by the two short term capital losses of $15,000 each leaving a net loss $10,000 for the year - of which you can take $3,000 for '97 and carry the $7,000 loss forward. NO your $20,000 gain offsets your $20,000 loss. You have another $10,000 short-term capital loss you hold 500 shares with a $90 basis My comments: I don't see a $10000 loss. It is a $20000 loss if the FIFO, with him still holding 500 shares @ 90. It is break even if the LIFO, with him holding 500 shares @ 110. Ira