schedule D stock question

Discussion in 'US Taxes' started by ~AlicGinnis~, Sep 19, 2008.

  1. ~AlicGinnis~

    ~AlicGinnis~ Guest

    I have two questions about trading stocks:
    1: When you trade in and out of a stock during the year numberous times,
    how do you handle it at tax time?
    For example, if you made 20 trades, all short term, can you just total up
    the basis and the sales and put
    it in as one generalized buy and sell, or do you have to enter each and
    every one tedious as that may be?

    2: If you have 10 buys over 3 years, and sell 6 of them this year, can you
    pick wich of the 10 are the
    ones you sold, or is it first in first out?

    ~AlicGinnis~, Sep 19, 2008
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  2. ~AlicGinnis~

    Jim Kingdon Guest

    1: When you trade in and out of a stock during the year numberous times,
    Look at the wash sale rule for one thing.
    As strange as this sounds, I think the fine print of the sale will
    actually have some certificate numbers (or some such) which says
    whether it is selling the new ones or the old ones. You might want to
    research this more, as what I am telling you seems odd to me too
    (given the fungibility of shares of stock).
    Jim Kingdon, Sep 20, 2008
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  3. ~AlicGinnis~

    Capt. Tuttle Guest

    Jim Kingdon laid this down on his screen :

    You should do a lot of research!!
    I'm sure it is NOT FIFO. You pick which shares you want to sell. Over 3
    years some might go up and some might go down. If you want a profit you
    sell the ones that went up. If you want a lose you sell the ones that
    have gone down.
    This might sound strange, but once I sold some stocks at a lose and
    paid less in taxes that year which more than made up for the lose I
    took on the stock.
    Capt. Tuttle, Sep 20, 2008
  4. ~AlicGinnis~

    Paul Thomas Guest

    See the instructions for Schedule D.

    As weird as it may seem to you, you are supposed to account for each sale on
    a separate line on Schedule D and it's overflow schedules.

    You don't get to pick after the fact. Instruct your broker in writing which
    shares to sell.
    Paul Thomas, Sep 21, 2008
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