Idle Media Inc (IDLM)

[wadirum1]

Yes, if someone paid $1 per share for those 11,000, that would be $11,000. Let's say the combined federal, state, and local tax on LT cap gains is 20 percent (and it is often higher, especially in the AMT claw-back zone). Then those shares are worth about $2,100 as a tax loss (to someone who has gains) plus $385 in cash from the sale.

That's like getting 20c per share.

Then again, the calculation is very different if one only paid 16c. At that cost basis, the combined cash plus tax benefit (at 20 percent) would be like getting 6 or 7c per share.

So, cost basis is key in a tax loss calculation.

Wadi

PS I am not a tax or investment advisor. My math could be very wrong and/or assumptions might not fit particular situations.