07-02-2014, 11:50 AM
I have 100 shares of KMI at MerrillEdge that I transferred in from ETrade in February. Merrill shows this position as -65% loss, which implies a cost basis of $102 per share. Of course this is impossible, because KMI has never traded that high, and in reality the position is up.
I called them and they said it's adjusted for a wash sale resulting from trading activity back at ETrade, having to do with when I had it on DRIP I think - I can't quite remember the details. Anyway, I pointed out that there has to be a mistake because it's impossible to have a $6700 loss on $3600 of KMI purchased for around $35/share.
Merrill: I checked with the person who would make the adjustment and he says the accounting is correct.
Me: So you're saying I can claim a -$6700 tax loss?
Merrill: Yes it appears that way.
Me: But don't you think it's strange that it implies a CB of $102 when KMI has never traded that high? Have you pointed that out to your guy?
Merrill: Yes, but I'm told it's correct.
So, I'd be happy to record the tax loss, but I'm sure Merrill is wrong. It was a very strange conversation to have. One of us must be wildly mistaken. Has anyone seen anything like this?
I called them and they said it's adjusted for a wash sale resulting from trading activity back at ETrade, having to do with when I had it on DRIP I think - I can't quite remember the details. Anyway, I pointed out that there has to be a mistake because it's impossible to have a $6700 loss on $3600 of KMI purchased for around $35/share.
Merrill: I checked with the person who would make the adjustment and he says the accounting is correct.
Me: So you're saying I can claim a -$6700 tax loss?
Merrill: Yes it appears that way.
Me: But don't you think it's strange that it implies a CB of $102 when KMI has never traded that high? Have you pointed that out to your guy?
Merrill: Yes, but I'm told it's correct.
So, I'd be happy to record the tax loss, but I'm sure Merrill is wrong. It was a very strange conversation to have. One of us must be wildly mistaken. Has anyone seen anything like this?