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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Nandu who wrote (826)	4/18/1999 8:24:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

You question points out why active traders elect Mark-to-Market if they qualify for trader status.

To: Nandu who wrote (826)	4/19/1999 1:50:00 AM
From: Nelson Chang	Respond to of 1383

>>>By this logic, if I bought 1000 shares of XYZ on Mar 2nd, sold it at a profit on Mar 5th, then bought 1000 shares of ZYX again on Mar 20th, then sold the second lot for a loss on Mar 31st, I have to report the Mar 31st sale as a wash sale and increase the basis for the Mar 2nd purchase?<<< Yes, I believe thats correct. >>>What if I bought 1000 shares again on Apr 1st. Do I increase the basis for the Mar 2nd purchase or the Apr 1st purchase?<<< At this point it does not matter. Realize that we are probably being WAAAAAAAY more nit picky than need be, which never hurts. This is enough to give even the hardest auditor a headache.