PAL, thanks. 20% at Brown vs 30% at Fido is a big difference (but not enough to get me to move my taxable account there - yet).
You might want to check with your CPA. All shorts (equity or option) arenever considered LTCG regardless how long the time frame.
Ooops, of course you're right. Short income is always short-term gains. I was thinking "write LEAPS to defer the ST capital gains for a year or two", but it came out wrong. Appreciate the correction.
Of course, what if you entered the put sale as a very, very wide bull spread (eg, right now, sell the Jan01 400 puts, at the same time buy the, say, Jan01 100 puts for about a penny each). Technically, that's a spread, not a short sale, so wouldn't it possibly qualify for LTCG treatment if the entire spread is held for a year? Or does the fact that it's a credit spread automatically make it a short sale in the eyes of the tax code?
Interesting angels-dancing-on-pinheads stuff,
-Rose-
PS I know how to spell "intimitely" now, I think. |
