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    winkers1155's Avatar
    winkers1155 Posts: 2, Reputation: 1
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    #1

    Mar 5, 2007, 10:09 AM
    Short vs. long term capital gain
    Hello;
    I have held a stock for some. I sold some of that stock through an on-line account and also purchased the same stock back at lower prices and sold again. Does it matter whether I have held the same stock for years but the sale/repurchase made it look like a short-term gain?

    I hope that makes sense.

    Winkers :confused:
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 6, 2007, 10:06 AM
    Winkers:

    What you did was a WASH SALE. Buying and selling a stock within 30 days to lower the basis of the stock is treated as NO SALE at all under the WASH RULES. The original basis must be used when recording the final sale.
    winkers1155's Avatar
    winkers1155 Posts: 2, Reputation: 1
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    #3

    Mar 6, 2007, 10:45 AM
    Atlanta;

    I guess my original question remains, there was really nothing bought/sold in a 30-day period. The trades were made to take some profit and then bought some back over 2006 at lower prices. Whether buying or selling a stock I have held for 10 years, are the gains seen in 2006 treated as short term or long term?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Mar 7, 2007, 10:46 PM
    If you wait at least 31 days between the sale and re-purchase, you will have no problems. If not, then the sale NEVER TOOK PLACE in the eyes of the IRS or SEC.
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