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Wash sales

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Posted by George Timms on January 06, 2001 at 09:39:24:

The IRS disallows the loss on a sale if you purchase "substantially identical" securities within 30 days (before or after) the sale. I sold some mutual fund shares this year at a loss, with a small fraction of those shares subject to wash sale rules (because of dividend reinvestment in the month before the sale).

FM 4.7 doesn't seem to have any provision for wash sales on the Captial Gains reports. Is this added in FM 5.0?

I got FM 4.7 to compute the allowable and disallowed loss by breaking the sale into two transactions (one for the shares with allowable loss, and another with the number of shares for which the loss is not allowed), but I had to "fudge" the date on one transaction to make FM compute the loss on the correct shares for the wash sale (using FIFO rules). Is there a better way to handle this?

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