#taxableevents

Thank you to our many attendees for participating in Wash Sales: A Closer Look, last week’s 2nd Taxable Events Webinar. George Michaels, our resident authority on tax analysis/accounting of securities transactions (TAST) led an advanced discussion of section 1091 of the tax code.

Michaels focused on “wash sale rule headaches” and here’s some of what he covered. He discussed chaining/rolling, which is how cost basis adjustments for one wash sale can affect another lot’s holding period, basis and calculation of gain/loss; he also talked about branching/sublots, which addresses instances when the disposed and replacement lots do not contain the same security size; when discussing substantially identical securities, Michaels referred to the seminal court and revenue rulings that dictate what constitutes material differences when comparing securities.  

After the presentation, Michaels and Daniel Tilkin, G2 partner and senior tax analyst, fielded a number of attendee questions including whether contributed securities can trigger the wash sale rule and if total return swaps are considered contracts to acquire.