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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 (812)	3/29/1998 9:11:00 AM
From: Spots	Read Replies (1) \| Respond to of 5810

Colin, a few posts back you alluded to a way to report a small "Cash in lieu" of fractional shares rather than prorating the basis back to the primordial ooze. Maybe I misunderstood, but I have a small amount ($70 or so) of Cash In Lieu due to an odd split of a stock I hold in tiny lots due to monthly purchase in an investment plan, and allocation will be a real pain. (Dern thing has now split again too, so I'll have the same problem next year. Grr.) Do you (or anyone) know a way to report this without actually attributing the particular share basis? Regards, Spots

To: Colin Cody who wrote (812)	3/29/1998 9:51:00 AM
From: Pete	Read Replies (1) \| Respond to of 5810

Do wash sales rules apply if the first transaction is a profit? For example: I buy 1000 shares of XYZ and realize a short term profit of $1000. The next day, thinking it will run again, I purchase 500 shares of the same stock and sell it quickly for a loss of $250. Does the wash sale rule apply in this case? If it does, how do I report this on Sched D? I guess I'm confused about the 30 days before + 30 days after. Would appreciate if someone could explain this too. Pete