Investment and Finance

A wash sale occurs if you sell stock or securities at a loss, and within 30 days before or after that sale, you buy or acquire (in a fully taxable trade or enter into a contract to acquire substantially) identical stock or securities. The deduction for the wash sale loss will not be allowed, and the basis of the stock will be increased by the amount of the previously disallowed loss.

No. The conversion to common stock is not a taxable event. The cost basis of the converted common stock is the original cost basis of the converted bond.

The exercise of your stock warrants is not a taxable event.

A non-callable feature protects the owner against the bond being prepaid when interest rates fall. When a bond is callable because of fallen interest rates, the issuer can "call" the bond, paying off the balance of the bond before maturity. If you own the bond, you would then need to reinvest the funds into another investment and thus earn less interest income. If you want to lock in the interest rate and be protected against your bond being called, you should opt for non-callable bonds even though the interest rate is slightly lower.

Generally, you will not get a tax benefit from a tax credit resulting from a passive activity unless the passive activity has income that generates a tax. The tax must be equal or greater than the credit that is allocated to that passive activity to receive the full benefit of the credit. The disallowed credit may be carried forward to future years. The calculation of the allowed credit is reportable on IRS Form 8582-CR. Speak to your local CPA about the passive credits' deductibility.

No. Your receipt of stock under a stock split in not a taxable transaction. When you eventually sell any of the stock , it is then a taxable transaction. It will be reported on IRS Schedule D.

Yes. Dividend reinvestment plans let you use dividends to buy more shares of stock in a corporation instead of receiving the dividends in cash. If you are a member of this type of plan and use dividends to buy more stock at a price equal to its fair market value, you must report the dividend as income on IRS Schedule B.

You are allowed to offset capital "gains" with capital "losses".
If you have capital gains equal to or greater than the stock loss, then the current year stock loss is fully deductible.
If you have no other capital gains or the loss exceeds the capital gains, then the current year stock loss is limited to the lessor amount of the loss that exceeds the gain or $3,000 (1,500 if your filing as married filing separate status).
If the loss is limited in the current year, then you may carry over the unused limited amount into future years until it is completely used up.

Contributions to your 401(k) plan are not the same as an IRA deduction.
The amount you contributed to the 401(k) plan reduces the taxable wages reported in box 1 of your W-2 form.