Replies to post #94420 on Mr Cooper Group Inc fka COOP

[Lawrence 147]

It just seems to me that if you sold at lets say $ 5.00 and declared the profits after one year that would be one tax basis and then when you buy to replace, lets say you buy at $0.15 and for some reason you replaced at $0.16 that would be the new tax basis that you would be taxed on.
You would get the long term on your or 15% on your first sale but then when you went to replace the stock you borrowed say the 15/ 16 split from the time you bought to the time you replaced that would be the new tax basis and it would still behoove you to replace at the $ 015/16 level up to $ 1.00 just to not be stuck holding the bag when a settlement comes out and you will have to replace the stock at a $ 5.00 to $ 30.00 price range. Oh my good ness I think I just confuzzed myself.

[WithCatz]

Same section of same publication:

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.



While the example given earlier in the pub was for a short-sale that resulted in a loss, the IRS doesn't care.

It's the fact that you only held the stock for as long as it took to hand it over to the broker (a day or less)...

And since it was a day or less, even tho the entire transaction was 366 days or more, it's NOT qualifying for long-term gains.