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At 10:23 AM 4/4/1999 -0600, Brian Elkins wrote:
>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? Yes and no you don't have to say it's was a short.
>
>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?
Divide them up as this is reported the same way on 1099 so it matches.
>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.
Its the sum of the profits and losses.
Not sure but common sense says you would lose any long term capital gains
and all losses would be disallowed if it fell in two calendar years like
12/97 and 01/98. Other wise you would be tax of the net of the P&L for that
stock.
>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
>
>
Sorry to answer a question with guesses but its a start.
Robert
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