Saturday, June 3, 2023 | Back issues
Courthouse News Service Courthouse News Service

IRS Wants to Know If Stock Sale Affects Value

WASHINGTON (CN) - Brokers must classify gains and losses as long-term or short-term for the basis of any security or stock in an entity still held by the seller, according to proposed Internal Revenue Service rules.

The IRS believes this would show the influence a sale of securities that form a significant part of a company's basis in the security has on its price.

In addition, the proposed regulations allow taxpayers to use averaging to compute the basis in stocks acquired at different times and at different prices.

Read the Top 8

Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.