Tax Questions #2

[Brian Elkins <belkins@xxxxxxxxxxxx>]

Yesterday, I posted a message asking if it was okay to ask tax questions on this
list.  I received a reply that indicated I should post them.  I'm sure these are
very basic questions but at this point they are not to me!  All these questions
are for assets held less than one year.  Here goes:

1.)  When a short sale is opened and subsequently closed how is this reported on
Schedule D?  I'm guessing that when you open the position you would actually put
this under "Date Sold" and when you close the position you would put this under
"Date Acquired".  That way it would accurately reflect a profit or loss.  Also,
in the first column "Description of Property" should you indicate this as a short
position?

2.)  You acquire 500 shares in 4 separate transactions over a two month period
and then one month later (after the last purchase)  you sell all 500 shares in
one sale.  Are all 4 purchases lumped together as one or do you divide this up
into 4 separate transactions and then divide the sale accordingly as well?

3.)  Now, for the question I've been losing sleep over.  Wash Sales.  Over a 3
month period I had 15 "round trips" in one particular company.  Of these
positions, none of them were more than 30 days apart.  Does the wash sale rule
apply here or does the wash sale rule only apply when the position is opened
again within a 30 day period and then not closed.  All of the 15 "round trips"
were opened and subsequently closed within a 30 day period.

If the wash sale rule applies in this case I can only imagine this area becomes
incredibly complex for a day trader.

Any help that is extended will certainly be most appreciated.  Thank you.

Brian Elkins