colester167
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Joined: 17 Jul 2010
Location: United States
Online Status: Offline
Posts: 3
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| Posted: 14 Sep 2011 at 18:55 | IP Logged
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I got a certain question on becker simulation and was
wondering if anybody could help me with it.
"Taxpayer purchased 500 shares of Southwestern Energy
Corp for $10/share on 7/15/05. TP sold the 500 shares on
3/2/08 for $7/share. On 3/31/08, the taxpayer purchased
500 shares of southwestern energy for $8/share, sold the
entire lot for $9/share on 10/31/08 and did not
repurchase. Calc 2008 info."
Now the answer was in multiple parts.
Proceeds: $4,500
Basis: $5,500
gain or (loss): $1,000
Amnt to be reported on tax return: $1,000
Now I know why the basis is 5500 because of was sales of
1500. 4000+1500=5500
Since it would be a $500 loss if use $4,000 as basis then
you would have a $500 gain and that would lower the orig
wash sale loss of $1,500 to $1,000. I was curious if that
$1,000 gain is adding back that $1,000 wash sale loss
onto income? If not, then how did they get the $1,000
gain?
Any help would be extremely appreciative because that is
the only way I could figure out the $1,000 gain.
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Topic: Wash sale issue
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