diff --git a/src/report.cpp b/src/report.cpp
index 053a4e5ed..c1b41aa12 100644
--- a/src/report.cpp
+++ b/src/report.cpp
@@ -47,7 +47,7 @@
 #include <util.h>
 #include <main.h>
 
-static void countTasks (const std::vector <Task>&, const std::string&, const std::string&, int&, int&);
+static void countTasks (const std::vector <Task>&, const std::string&, const std::vector <Task>&, int&, int&);
 
 extern Context context;
 
@@ -2236,9 +2236,8 @@ std::string onProjectChange (Task& task, bool scope /* = true */)
     Filter filter;
     context.tdb.load (all, filter);
 
-    countTasks (all,                           project, task.get ("uuid"), count_pending, count_done);
-    countTasks (context.tdb.getAllNew (),      project, "nope",            count_pending, count_done);
-    countTasks (context.tdb.getAllModified (), project, "nope",            count_pending, count_done);
+    countTasks (all,                           project, context.tdb.getAllModified (), count_pending, count_done);
+    countTasks (context.tdb.getAllModified (), project, (std::vector <Task>) NULL,     count_pending, count_done);
 
     int percentage = 0;
     if (count_done + count_pending > 0)
@@ -2271,29 +2270,42 @@ std::string onProjectChange (Task& task1, Task& task2)
 static void countTasks (
   const std::vector <Task>& all,
   const std::string& project,
-  const std::string& skip,
+  const std::vector <Task>& skipTasks,
   int& count_pending,
   int& count_done)
 {
   std::vector <Task>::const_iterator it;
   for (it = all.begin (); it != all.end (); ++it)
   {
-    if (it->get ("project") == project &&
-        it->get ("uuid")    != skip)
+    bool skip = 0;
+
+    if (it->get ("project") == project)
     {
-      switch (it->getStatus ())
+      std::vector <Task>::const_iterator itSkipTasks;
+      for (itSkipTasks = skipTasks.begin (); itSkipTasks != skipTasks.end (); ++itSkipTasks)
       {
-      case Task::pending:
-      case Task::waiting:
-        ++count_pending;
-        break;
+        if (it->get("uuid") == itSkipTasks->get("uuid"))
+        {
+          skip = 1;
+          break;
+        }
+      }
+      if (skip == 0)
+      {
+        switch (it->getStatus ())
+        {
+          case Task::pending:
+          case Task::waiting:
+            ++count_pending;
+            break;
 
-      case Task::completed:
-        ++count_done;
-        break;
+          case Task::completed:
+            ++count_done;
+            break;
 
-      default:
-        break;
+          default:
+            break;
+        }
       }
     }
   }
diff --git a/test/bug.708.t b/test/bug.708.t
new file mode 100755
index 000000000..3a12e029b
--- /dev/null
+++ b/test/bug.708.t
@@ -0,0 +1,84 @@
+#! /usr/bin/perl
+################################################################################
+## taskwarrior - a command line task list manager.
+##
+## Copyright 2006 - 2011, Paul Beckingham, Federico Hernandez.
+## All rights reserved.
+##
+## This program is free software; you can redistribute it and/or modify it under
+## the terms of the GNU General Public License as published by the Free Software
+## Foundation; either version 2 of the License, or (at your option) any later
+## version.
+##
+## This program is distributed in the hope that it will be useful, but WITHOUT
+## ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS
+## FOR A PARTICULAR PURPOSE.  See the GNU General Public License for more
+## details.
+##
+## You should have received a copy of the GNU General Public License along with
+## this program; if not, write to the
+##
+##     Free Software Foundation, Inc.,
+##     51 Franklin Street, Fifth Floor,
+##     Boston, MA
+##     02110-1301
+##     USA
+##
+################################################################################
+
+use strict;
+use warnings;
+use Test::More tests => 9;
+
+# Create the rc file.
+if (open my $fh, '>', 'bug.rc')
+{
+  print $fh "data.location=.\n";
+  print $fh "bulk=100\n";
+  print $fh "confirmation=no\n";
+  close $fh;
+  ok (-r 'bug.rc', 'Created bug.rc');
+}
+
+# Bug 708: Bad Math in Project is % Complete
+
+# Setup: Add a few tasks
+qx{../src/task rc:bug.rc add One pro:p1};
+qx{../src/task rc:bug.rc add Two pro:p1};
+qx{../src/task rc:bug.rc add Three pro:p1};
+qx{../src/task rc:bug.rc add Four pro:p1};
+qx{../src/task rc:bug.rc add Five pro:p1};
+qx{../src/task rc:bug.rc add Six  pro:p1};
+qx{../src/task rc:bug.rc add Seven pro:p1};
+qx{../src/task rc:bug.rc add Eight pro:p1};
+qx{../src/task rc:bug.rc add Nine pro:p1};
+qx{../src/task rc:bug.rc add Ten pro:p1};
+
+# Complete three tasks and ensure pending and done counts are updated correctly.
+my $output = qx{../src/task rc:bug.rc do 1-3};
+like   ($output, qr/Project 'p1' is 30% complete \(7 of 10 tasks remaining\)\./ms, 'Project counts correct for a multiple done');
+
+# Change three projects and ensure pending and done counts are updated correctly.
+$output = qx{../src/task rc:bug.rc 4-6 pro:p2};
+like   ($output, qr/Project 'p1' is 42% complete \(4 of 7 tasks remaining\)\./ms, 'Project counts correct for a multiple project reassignment part a');
+like   ($output, qr/Project 'p2' is 0% complete \(3 of 3 tasks remaining\)\./ms, 'Project counts correct for a multiple project reassignment part b');
+
+# Delete three tasks and ensure pending and done counts are updated correctly.
+$output = qx{../src/task rc:bug.rc del 7-9};
+like   ($output, qr/Project 'p1' is 75% complete \(1 of 4 tasks remaining\)\./ms, 'Project counts correct for a multiple delete');
+
+# Cleanup.
+unlink 'pending.data';
+ok (!-r 'pending.data', 'Removed pending.data');
+
+unlink 'completed.data';
+ok (!-r 'completed.data', 'Removed completed.data');
+
+unlink 'undo.data';
+ok (!-r 'undo.data', 'Removed undo.data');
+
+unlink 'bug.rc';
+ok (!-r 'bug.rc', 'Removed bug.rc');
+
+exit 0;
+