short-term or long-term, gain or loss?


N

NetComm888

Suppose I bought 100 shares of stock ABC on 8/1/03 (@ $16/shr) and
then later I bought another 100 shares on 3/1/04 (@ $12/shr). Now I
decide to sell 100 shares and @ $15/shr. So is it capital gain or
loss? Is it 100*(15-12)=300 or 100*(15-16)=-100?
And when I file my tax return, is that capital gain (loss) considered
to be long-term or short-term? I guess really the question is what
"Date Acquired" on Schedule D should I put down for that 100 shares I
sold, 8/1/03 or 3/1/04?

Thanks in advance
 
Ad

Advertisements

R

Rich Carreiro

Suppose I bought 100 shares of stock ABC on 8/1/03 (@ $16/shr) and
then later I bought another 100 shares on 3/1/04 (@ $12/shr). Now I
decide to sell 100 shares and @ $15/shr. So is it capital gain or
loss? Is it 100*(15-12)=300 or 100*(15-16)=-100?
Since you (presumably) didn't tell your broker at or before the
time of sale which block you were selling, you are required to
use first-in-first-out to establish your basis for the sale.

So you sold the 100sh purchased on 8/1/03 and therefore have
a long-term capital loss.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top