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Posted: 2/25/2006 6:18:51 PM EDT
Like it says. I know we report the gain/loss for any sell actions, but do we need to report only stock purchases if we didnt sell them?
Link Posted: 2/25/2006 6:23:02 PM EDT
No. no reporting of purchase stocks. Only the gain (or loss) when you sell.
Link Posted: 2/25/2006 6:24:55 PM EDT
If I understand your question, no.

Stock purchase alone is not a taxable event. Only when you sell the security, either for a loss or gain, is it necessary to report it. Either as a deduction (loss) or a capital gain (erm, um, gain).

Whether it is short term, long term, etc. should be decided by you and your CPA.

G

Link Posted: 2/25/2006 6:26:51 PM EDT

Originally Posted By glock23carry:
If I understand your question, no.

Stock purchase alone is not a taxable event. Only when you sell the security, either for a loss or gain, is it necessary to report it. Either as a deduction (loss) or a capital gain (erm, um, gain).

Whether it is short term, long term, etc. should be decided by you and your CPA.

G




What information specifically should the CPA need? I was told she will need the date, type of transaction (buy or sell) and gain or loss.
i figured she'd just need the total gain/loss on my account. I was a bit surprised when she said she would need the dates, unless its to confirm it happened during the fiscal 05 year.
Link Posted: 2/25/2006 6:35:22 PM EDT
[Last Edit: 2/25/2006 6:37:48 PM EDT by glock23carry]
Need to know when purchased, for how much and for how much it was sold. Simple math really. Also, you can carry forward losses that exceed one year's deductability, IIRC from the days of writing off a fortune in telecom stocks.

First of all, to determine which year the taxable event occured. And secondly, to determine if it is a short term capital gain/loss or long term. The amount of time that you hold the security determines if it is short or long term. Hence the dates of the purchase and sale.

As I understand it... Not a CPA... etc, etc.

G
Link Posted: 2/25/2006 6:54:14 PM EDT

Originally Posted By glock23carry:
Need to know when purchased, for how much and for how much it was sold. Simple math really. Also, you can carry forward losses that exceed one year's deductability, IIRC from the days of writing off a fortune in telecom stocks.

First of all, to determine which year the taxable event occured. And secondly, to determine if it is a short term capital gain/loss or long term. The amount of time that you hold the security determines if it is short or long term. Hence the dates of the purchase and sale.

As I understand it... Not a CPA... etc, etc.

G



Ahhh, that makes sense. Not hard, I already got all the info together and did the math for her. Just was a bit confused as to why she needed the dates.
Makes sense now. My brain just isnt working anymore.
Link Posted: 2/25/2006 7:43:16 PM EDT

Originally Posted By Specop_007:

Originally Posted By glock23carry:
If I understand your question, no.

Stock purchase alone is not a taxable event. Only when you sell the security, either for a loss or gain, is it necessary to report it. Either as a deduction (loss) or a capital gain (erm, um, gain).

Whether it is short term, long term, etc. should be decided by you and your CPA.

G




What information specifically should the CPA need? I was told she will need the date, type of transaction (buy or sell) and gain or loss.
i figured she'd just need the total gain/loss on my account. I was a bit surprised when she said she would need the dates, unless its to confirm it happened during the fiscal 05 year.



No, purchases are not reported until the are sold.

The dates are needed by your CPA to determine the type of gain/loss. Short term < year, long term > year.

Link Posted: 2/25/2006 9:55:33 PM EDT
[Last Edit: 2/25/2006 9:59:17 PM EDT by prk]
Just keep the details indefinitely for the future, until at least 3 years after the tax return is filed for the ultimate sale; also for any additional shares received through splits, and same info for any stock dividends. Some states have a statute of limitations longer than the 3-years-after-filing that IRS uses.
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