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Exchanges of:
1. Common stock to preferred stock (vice versa);
2. Voting stock to non-voting stock (vice versa);
3. Stock of one corporation to stock of another corporation;and
4. Bonds of the same corporation that differ as to interest rates,
interest payment dates, and dates of issuance and maturity, or
one is secured by a mortgage and the other is not.
Requisites of Wash Sales Loss
a. No loss shall be recognized on the acquisitions within the sixty-one day period
which are matched with a number of shares or securities disposed of ; and
b. A capital loss shall be recognized on the number of shares or securities disposed
of which cannot be matched with acquisitions within the sixty-one day period.
3. If the number of securities sold is less than the number of securities purchased
within the sixty-one day period, then:
a. The stocks or securities disposed of will be matched with an equal number of
shares of stock or securities acquired in accordance with the other of acquisition
beginning with the earliest acquisition.
Formula:
1. To determine the amount of nondeductible wash
sale loss
If the fair market value of the securities goes up to P125 per share,then
Miss Mar would sustain a capital loss on short sales amounting to P
5,000, thus;
If Mr. Mapalo received a total amount of P240,000 from Benguet Corporation upon
its complete liquidation, then the determination od deductible loss would be: