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    short stock sale

    taxpayer received a 1099 showing proceeds for $10,000 for 2005. This was a short sale and is still open. They had share of this same stock but it was closed prior to this. How do I show this on the return. Thanks
    Pookie

    #2
    Short sale

    The stock's were then sold for a loss, but you have to report the 1099-B anyway. So the sale price is 10k and the basis is 10k. Assume they sold the stock for a $2,000 loss. That loss is just suspended. The loss is now added to the basis of the new shares that were purchased.
    I would put a favorite quote in here, but it would get me banned from the board.

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