THREAD CLOSED!!! Ask Rande 5000+: USE NEW THREAD
- Rande
- JenL_2
- Rande
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- Karin_
- Rande
- bullrun
- SteveT
- Rande
- Rande
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» Rande - Okay, let’s see:
Okay, let’s see:Case One:
Scenario is one share bought at 30, one share bought at 24 and one share bought at 23. Since average cost does not apply to individual security transactions (only mutual funds) the only options are FIFO or specific ID. Let’s assume a FIFO sale of two shares.
Sale price on first two share is $25, which means loss of $5 and gain of $1. The loss cannot be taken for tax purposes because of the wash sale rule, so the remaining share’s basis will be increased by $5 to $28.
Sale price $27 – loss of $3 and gain of $3. Loss cannot be recognized and remaining share’s basis is increased to $26.
Sale price $30 – no gain/loss on first share and gain of $6 on second share. No adjustment of basis on remaining share needed.
Case Two:
Stock purchased at $30 and sold next day for $29. Stock repurchased two weeks later at $25. Cost basis of newly acquired shares (assuming same number of shares) would be $26, adjusted for the disallowed loss of $1 per share.
Cashe Three:
Same as case one, except 1/3 sold next day at 25 and 1/3 sold day after at 31.
On first sale, $5 loss is disallowed and added to the basis of the next shares bought (in order) so that the basis of the second share is now $29. That share is sold at $31 for a gain of $1. The remaining share keeps its original basis of $23.
ISN’T SHORT-TERM TRADING FUN?
BTW – Good discussion of wash sale rules and their application (with examples) in IRS Pub 550, “Investment Income and Expenses.” You can download from the following site:
http://www.irs.ustreas.gov/forms_pubs/pu...
<img src=http://www.internetcount.com/1867857677.cgif width=5 height=5>
-- posted by Rande
» JenL_2 - AR5K!
<img src=" http://www.geocities.com/jeninvestor/con..." width=150 height=190>
.....Jen
-- posted by JenL_2
» Rande - Sort of anti-climatic as the FOMC comes in as expected with a 25
Sort of anti-climatic as the FOMC comes in as expected with a 25bp hike and language similar to last time ("imbalances remain"). Now we get to see just how "fully discounted" it all was.
<img src=http://www.internetcount.com/1867857677.cgif width=5 height=5>
-- posted by Rande
» Rande - Thanks for that, Karin.
Thanks for that, Karin.
Well, well, well. What can you say except Kirk should go away skiing more often. Didn't we have a nice up day or two the last time he took to the slopes?
Meanwhile, the April crude oil futures slipped below $28 today (27.95) and the 30-year is now yielding 5.95% while the 10-year yields 6.12%. Can't ask for much more....except some visible signs of cooling off in the economy (without recession) and some good 1Q corporate earnings. Back to econ and earnings watch for awhile I guess. Just happy not to be living or dying by what happens from day-to-day. Makes it easier to take it all in objectively.
-- posted by Rande
» Rande - And thank you Steve.
And thank you Steve.On top of GE's positive pre-earnings announcement, this news from Chase can't hurt (especially for those with a toe in the financial sector waters):
NEW YORK--(BUSINESS WIRE)--March 21, 2000--The Chase Manhattan Corporation (NYSE:CMB) announced that its Board of Directors today approved a 17% increase in the quarterly common stock dividend to $.48, or $1.92 on an annual basis. The increase will be effective for the dividend payable on April 30th to stockholders of record at the close of business April 6th.
The Board of Directors also approved a three-for-two stock split, subject to shareholder approval at the corporation's annual meeting on May 16th. The actions reflect the Board's confidence in Chase's prospects. If approved by the shareholders, the record date for the split will be May 17, 2000 and the additional shares issued as a result of the split will be distributed on June 9, 2000.
-- posted by Rande
» Rande - And thank you Steve.
And thank you Steve.On top of GE's positive pre-earnings announcement, this news from Chase can't hurt (especially for those with a toe in the financial sector waters):
NEW YORK--(BUSINESS WIRE)--March 21, 2000--The Chase Manhattan Corporation (NYSE:CMB) announced that its Board of Directors today approved a 17% increase in the quarterly common stock dividend to $.48, or $1.92 on an annual basis. The increase will be effective for the dividend payable on April 30th to stockholders of record at the close of business April 6th.
The Board of Directors also approved a three-for-two stock split, subject to shareholder approval at the corporation's annual meeting on May 16th. The actions reflect the Board's confidence in Chase's prospects. If approved by the shareholders, the record date for the split will be May 17, 2000 and the additional shares issued as a result of the split will be distributed on June 9, 2000.
-- posted by Rande
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