long-term |Form 8949 Capital Gain & Wash Sales calculator software

Why there are some trades are showing in Short term when the dates would seem like Long Term.


Q:Why there are some trades that are showing in Short term when the dates would seem like Long Term?

In USA, the wash sale rule has the following consequences:
Holding Period: The holding period for the replacement stock includes the holding period of the stock you sold.

Wash sale Holding period
When a wash sale occurs, the holding period for the replacement stock includes the period you held the stock you sold.
Example: You’ve held shares of XYZ for 10 years. You sell it at a loss but then buy it back within the wash sale period. When you sell the replacement stock, your gain or loss will be long-term — no matter how soon you sell it.

So short term loss can be change to long term loss because of wash sale event,please check it.

Short-Term or Long-Term Capital Gain or Loss


As a general rule, you determine whether you have short-term or long-term capital gain or loss on a short sale by the amount of time you actually hold the property eventually delivered to the lender to close the short sale.

Marked to Market


in US,Under the marked to market system, 60% of your capital gain or loss will be treated as a long-term capital gain or loss, and 40% will be treated as a short-term capital gain or loss. This is true regardless of how long you actually held the property.

Section 1256 Contracts Marked to Market

A section 1256 contract is any:

  • Regulated futures contract,
  • Foreign currency contract,
  • Nonequity option,
  • Dealer equity option, or
  • Dealer securities futures contract

Example.

On June 22, 2008, you bought a regulated futures contract for $50,000. On December 31, 2008 (the last business day of your tax year), the fair market value of the contract was $57,000. You recognized a $7,000 gain on your 2008 tax return, treated as 60% long-term and 40% short-term capital gain.

On February 1, 2009, you sold the contract for $56,000. Because you recognized a $7,000 gain on your 2008 return, you recognize a $1,000 loss ($57,000 − $56,000) on your 2009 tax return, treated as 60% long-term and 40% short-term capital loss.

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