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

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#### 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?

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#### 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.