AboutJay Kay Expertise As a private investor for the past 40 years, I have experienced both bull and bear markets, and have lived to tell the tale. I should be able to provide you with serious, practical insights into managing stocks, bonds and mutual funds in your portfolio, along with useful information concerning most aspects of personal finance. No specific stock/bond recommendations furnished.
Question I own one stock and held it more than a year and sold it in 2008 and realized 30k long term gain. I repurchase the same stock and have held it during the recent downturn. I now have a loss of 20k. If I were to sell it and not repurchase for a period of 31 days to avoid the Wash Rule. How would these long term and short turn gains be applied to my taxes?
Answer If I understand the circumstances correctly, you have two separate transactions to report for 2008: a long term capital gain of 30k, and a short term capital loss of 20k. These would be reported in different sections of Schedule D. The math that follows is calculated according to the Schedule D instructions. There is no simple write-off of one against the other because they are long term and short term respectively.
