text: Wow, didn't know people posted homework questions on here.\n\nI'll be nice and help.\n\n1st transaction their is no tax effect for the 700, but the 300 shares have a $900 short term loss.  The other 700 falls under the "wash sale" rule of the IRS, and his basis remains the same as the original transaction (IE, 700 shares has a purchase basis of $19,600 (700*$28 original price per stock)\n\n2nd Short term capital gain of $6,000.  No releveance to the first transaction since the stocks are from different entitied.  He offsets the loss to the gain for a net gain of $5,100\n\n3rd.  Basis due to wash shale is $19,600.  He captures the loss of the difference (19,600-15,500) leading to a loss of 4,100.  Combine this with the other short term loss of $900, you have a total loss of $5,000.  Of this, only $3,000 short term capital losses may be claimed, and the other $2,000 is carrier over to the next year.