Short Sale

[Questionguy101]

Short Sale:

Sold 100 XYZ on 12-16-2010. Total proceeds = $10,000.

Bought 100 XYZ on 1-7-2011. Total cost = $11,000.

Short sale at a loss of $1,000.

Is it considered year 2010 loss or year 2011 loss?

[Gene V]

From instruction schedule D

If you received a Form 1099-B for a
short sale you entered into in 2010 but that did
not close in 2010, report it on line 1 or
line 8. Enter the sales price in column (d). If
the short sale did not close in 2010, enter
Open Short Sale” in column (e) and -0- in
column (f). When the short sale is closed in a
later year, report any gain or loss on your return
for that year.