Re: Q: Handling Basis Adjustments Resulting from Wash Sales

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In Reply to: Q: Handling Basis Adjustments Resulting from Wash Sales posted by Sam C. on January 07, 2000 at 05:09:21:

: What's the accurate way to adjust your basis as a result of a wash sale
: in FM? I sold some shares of a fund at a small loss within 30 days of
: making a purchase. Also, a few weeks later, I reinvested a distribution
: in the same fund, requiring another basis adjustment. I know how much to
: adjust the base; I just don't know how to record it in FM or what date I
: should assign the transaction. Any suggestions would be appreciated.

: Thanks,
: Sam C.

Hi Sam C.
There are three things that affect your cost basis:

1) The purchase cost
2) Account Fee Distributions
3) Return of Capital Distributions

Account fees increase your basis, while a return of capital distribution
decreases your cost basis.

Reinvested distributions, are treated as a distribution, and a purchase.
So, if the distribution is not one of the account fee or return of cap. types,
it won't affect the basis, but the purchase involved in the reinvestment
will increase your basis, for when you sell those re-purchased shares.

Thanks,
Mark
--
Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

Replies:

• Re: Q: Handling Basis Adjustments Resulting from Wash Sales Sam C. 20:55:21 01/09/00 (2)
  • Re: Q: Handling Basis Adjustments Resulting from Wash Sales Mark 21:36:55 01/09/00 (1)
    • Re: Q: Handling Basis Adjustments Resulting from Wash Sales Sam C. 12:44:29 01/10/00 (0)