4

A company I held shares in forced a buyback of a portion of my shares in them. Within 30 days, I then bought back that same number of shares to maintain my holding and basis. However, taking the two transactions together (the forced repurchase plus my subsequent buy back) I now have a net profit. Do I now decrease my basis in this stock, or do I treat the net profit as a capital gain in the current tax year? And what if I had made a net loss?

2

The reason for the sale doesn't matter. You sold shares. If those shares were sold for a profit, you have a capital gain, and tax due. If the shares were sold at a loss, your repurchase inside of 30 days was a wash sale, and the basis is adjusted. The loss is delayed until the next sale.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.