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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who wrote (465)5/7/2001 8:48:43 PM
From: BDR   of 5205
 
Using options to protect a short term gain until it can be considered long term for capital gains tax purposes is something the IRS has said is a no-no, but the rules aren't exactly crystal clear. Just how deep is very deep? "Substantial reduction of risk of loss" seems to be the principal at work. Now you can use options to carry a gain from one tax year to another, I believe, but it won't change the holding period.

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