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

To: pz who wrote (480)	1/19/1998 9:20:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

Paul, Technically you might not have a wash sale IF you aggregated those four lots into one sale that was profitable. . Otherwise you have a REQUIREMENT to defer the loss on the 6/30/97 sale into additional cost basis of the 7/16/97 purchase. . This deferal is then recognized to your benefit with the 8/11/97 sale. . Over all you have nothing being deferred into another year. Also every transaction was a SHORT-TERM profit or loss. . So while all the above technoical stuff is how you SHOULD do it, on the PRACTICAL SIDE, you might just do it "wrong" and report the sales normally, skipping the wash-sale/basis adjustments. . You risk making a computational error doing the wash sale. And if the IRSaudited you and "caught you", there would be no adjustment - because you closed out the whole thing in the same year! . Colin