JamesKim
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| Short-Term Capital Gains |
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The title of this thread says it all.
Question:
I have 7 buy transactions of XYZ company (stock) which was purchased on 7 different dates. Then sold it in the near future, held it for 3 months. On Schedule D they have 6 columns.
A. Descriptions of property (XYZ)
B. Date Acquired
C. Date Sold
D. Sales Price
E. Cost Basis
F. Gain or (loss)
Here's the layout:
XYZ purchased:
9/24/2009
9/30/2009
10/5/2009
10/16/2009
10/27/2009
10/30/2009
XYZ sold:
12/4/2009
How do I enter this into Schedule D?
Thanks
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Sun Feb 21, 2010 3:43 am |
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oldguy
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List all 7 transactions separately, but with all with the 12/4 sell date.
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Sun Feb 21, 2010 6:26 am |
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JamesKim
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If I did that, my share count won't match with my buy transactions. For instance, I bought 90 shares of XYZ on 9/24/09, but sold 600 shares of XYZ on 12/04/09. If I were to enter the sell date for all buy transaction I did, my profit would be wrong...
So here's my buy transaction list:
Buy:
9/24/09: 90 shares
9/30/09: 100 Shares
10/05/09: 110 shares
10/16/09: 100 Shares
10/27/09: 10 shares
10/30/09: 90 shares
11/27/09: 100 Shares
Sell:
12/04/09: 600 Shares
I'm confused due to the fact that if I were to put 7 separate buy transaction, all with the sell date as of 12/04/09 then I'm comparing different share amounts. My first row would be, 90 shares of XYZ, sold XYZ on 12/04/09. So how can I compare 90 shares bought with respect to 600 shares sold?
Thanks
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Sun Feb 21, 2010 8:31 pm |
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oldguy
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quote:
So how can I compare 90 shares bought with respect to 600 shares sold?
Your sell list will look like this:
Sell:
12/04/09: 90 shares
12/04/09: 100 Shares
12/04/09: 110 shares
12/04/09: 100 Shares
12/04/09: 10 shares
12/04/09: 90 shares
12/04/09: 100 Shares
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Sun Feb 21, 2010 10:04 pm |
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JamesKim
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Thank you
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Mon Feb 22, 2010 11:26 am |
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coaster
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You can make it simpler by using "average cost basis" -- google that and also look it up on the IRS web site. The "buy" date is listed as "various" which is an accepted IRS term -- in TurboTax it pops up as soon as you start typing "v...a..." in the date field.
~Tim~
Eye Candy : Why Whimsy
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Mon Feb 22, 2010 5:29 pm |
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JamesKim
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I was about to apply the average method, but decided to do it the long way. I do appreciate the advice. This is actually my first time doing my own tax return so there's a lot to learn and scrutinize.
Thanks.
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Tue Feb 23, 2010 12:12 am |
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jenikabourne
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The gain one realizes by closing a position one has held for less than one year. For example, if one buys a stock or bond and sells it five months later for more than what one paid, the gain is considered a short-term capital gain. The government wishes to encourage long-term investment and, as such, short-term capital gains are usually not entitled to preferential treatment for tax purposes; that is, they are taxed at a higher rate than gains from long-term investments.
attorney tax settlement
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Mon Nov 01, 2010 12:15 pm |
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zaynahblaze
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Benefits is considered a short-term capital gains pay later and sells for more. That is, long-term investment gains are taxed at a higher rate, a long time and thus, short-term capital gains for tax purposes generally no preferential treatment to encourage investment plans as are entitled to the government.
background checks
Last edited by zaynahblaze on Sat Nov 13, 2010 6:13 am; edited 1 time in total |
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Thu Nov 11, 2010 9:38 am |
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jewelora20
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If I were to enter the sell date for all buy transaction I did, my profit would be wrong...
wholesale fashion jewelry
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Sat Nov 13, 2010 5:24 am |
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NumbersMadeSimple
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Actually, the presentation on Schedule D can be simplified into one line:
SALE: enter the actual sale date and exact sales price
PURCHASE: enter the total cost of all shares purchased, and write "Various" for the purchase date.
Then just make sure to enter the gain in the short-term column.
NOTE: this would not apply if there was one purchase and multiple sale dates. That would require multiple lines and would require you to determine the method of costing: FIFO, LIFO, average, etc.
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Sat Dec 04, 2010 12:47 am |
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