[GNC] Wash sale recording

[R Losey]

So, early this year, I (unwittingly) did a wash sale. I have heard of wash
sales before, but I had made an invalid assumption.

In case anyone else doesn't know, in the US, if you sell a stock for a
loss, and repurchase it within 30 days, you are not allowed to claim the
capital loss. This is called a "wash sale".

I am trying to work out how I properly record this in GnuCash. I have
worked out something (based upon what an accountant said), but I wanted to
run it by this group as a check.

Anyway, I sold all my shares (100) in stock X for a loss of Y and the
following week purchased 50 shares.

So, I have recorded this as two multi-split transactions.

In the stock X account, split #1
DEBIT: sale price to the sweep fund
DEBIT: long term capital gain with Y (I supposed technically, it's a
"negative credit" because it's a loss, but this works)
CREDIT: selling 100 shares of stock X at the sale price
CREDIT: cost basis of stock X (again, technically, a negative debit, but
this works)

One week later, in the stock X account, split #2:
DEBIT: purchase 50 shares of stock X for the cost
DEBIT: cost basis of wash sale (Y)
CREDIT: long term capital gain with Y (to zero out the loss that I cannot
claim, and to add it to the cost basis of stock X)
CREDIT: sweep fund for cost of purchase


Does this seem the correct way to go about this? (it definitely leaves a
zero LT capital gain for stock X, which is what I needed to have happen).

Thank you!

-- 
_________________________________
Richard Losey
rlosey at gmail.com
Micah 6:8