1099-B question regarding long-term and short-term sales

in article snipped-for-privacy@s12g2000prg.googlegroups.com, Wawapluck at snipped-for-privacy@gmail.com wrote on 2/5/08 1:33 PM:

Example:

100 shares purchased 3/1/2006 for $1000 1 share purchased 6/1/2006 for $9 from reinvested div 1 share purchase 10/1/2006 for $5 from reinvested div 100 shares purchased 4/1/2007 for $1500 1 share purchase 6/1/2007 for $ from reinvested div 203 shares sole 8/1/2007 for $2436 or $12 a share

On 8/1/07 you sold 101 shares (your 1st 2 buys) long term for $1212 with a cost of $1009. Use any date you want over a year old as the purchase date.

Your second sale was 102 shares sold short term for $1224. Use any purchase date less than 1 year.

You can also show each individual lot and make 5 schedule D entries.

All freely provided advice guarantee correct or double your money back

Frank S. Duke, Jr. CPA Cincinnati, OH USA

Just make a second transaction.

Yes, as well as re-invested capital gains. It's painful when you have a mutual fund that pays dividends monthly, but I made a spreadsheet for this -- every month is a row in the spreadsheet, and you enter the date, amount re-invested, number of shares purchased. The spreadsheet tells you the short and long cost basis based on today's date. I think TurboTax has a tool similar to my spreadsheet.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ "VAR-L"

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