A question about ACB

快樂牛郎

I noticed that my mom's accountant seemed to calculate the ACBs of her stocks incorrectly.

Suppose you make one purchase, one sale and another purchase of the same stock within the same year.  The transactions are

Jan 5   ABC   buy 100 shares at 50 per share
Jun 5  ABC   sell 100 shares at 45 per share
Nov 5   ABC   buy 100 shares at 40 per share

My understanding is that you have incurred a loss when you sold ABC on Jun 5, so you would report a net loss of 5*100 = 500 dollars.

However, the accountant calculated the ACB of ABC by combining both purchases and concluded that the net gain/loss was 0 because ACB=45 and the selling price was 45.

快樂牛郎

superficial loss -
did your mum repurchase the same stock within 30days after she sold it?  if yes, the accountant is corrected.
tofu 發表於 2009/3/29 13:08

Oh right...Completely forgot about that.
Thanks,

快樂牛郎

But her mom repurchase the stock at Nov, which is over 30 days of the previous sales.  
Unless cowboy just makes up the transaction date for example.
kingsway 發表於 2009/3/29 17:38

Yes, I just made it up.
There's a mix of both in the real case.