Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Pete who wrote (814)	3/29/1998 11:33:00 AM
From: Colin Cody	Respond to of 5810

If you buy the same stock during the 61 day window surrounding the LOSS-sale, then you have a wash-sale. You report it as normal, showing the "loss", then you reverse the loss on form Sch D with the words "wash sale" in the description area. You add this amount to the basis for the stock BOUGHT. In your case you ALSO sold the stock bought, so while technically you have a wash sale, since you dumped the "tainted" stock, you still reflect the full economic loss on you Sch D. As I've posted before, personally I might just FORGET the wash sale, since it has NO TAX EFFECT for 1997 in your case. Colin