Taxes and Shorting
My friends,
I believe that it is important for all short investors to be mindful of the
tax burden for shorts. Currently I maintain a short balance of about
6,000 Zitel shares. To sell Zitel will result in a gain of $30,000+.
In this tax year, I am already at the top tax bracket. In California, that
means about 50% of my income goes to pay taxes. To cover Zitel will
cost me 50% of the $30,000 cash that I have already invested in QCOM.
Now in my situation I have quit my job, and am going back to school
That means "beautiful" Ventura College where the young ladies are nice :)
Next tax year, I will not have any partnership income. That will lower my
tax bracket. Then if I cover Zitel, and not sell any winner (QCOM, SUNW)
I will keep most of my short profits, cause my tax bracket in 2000, will be lower.
sure is a nice Q day
Michael |
