Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-28-2008, 02:18 PM
Junior Member
 
Join Date: Feb 2008
Posts: 1
Stock Transaction Advice

I bought few SNDK stock in October 2007 and sold with -1000 loss in nov 2007. and in the same month nov I bought again SNDK. And before year 2007 close I again sold the same SNDK stock with huge loss.

As I know abot wash sale (30 days period), I can not buy the same stock. So Is it my case has wash sale rule..

Can I get stock loss for this trasaction in my tax filling?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-04-2008, 11:12 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,398
Blog Entries: 3
What is a Wash Sale?

What is a Wash Sale?
In general, the IRS states that " you have a wash sale if you sell stock at a loss, and buy substantially identical securities within 30 days before or after the sale."

What are the Consequences of a Wash Sale
The wash sale rule actually has three tax consequences which are listed below:

1. The Taxpayer is disallowed to claim the loss on your sale.

2. The disallowed loss is added to the basis of the replacement stock.

3. The Taxpayer's holding period for the replacement stock includes the holding period of the stock that was sold.

So, in your particular case, it seems that you have a wash sale, "as you purchased an identical stock(SDNK) that you sold at a loss within 30 days of the day of sale."

Hence, a capital loss will be disallowed for this transaction in 2007!

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning