IOIH a question for you...now remember before answering it that I am not the coldest beer in the fridge..OK..so here it is..
If a stock is sold short in 2000 but remains uncovered, is all that money considered as capital Gains, considering that there was an increase to ones account...
in example..short 2000 AMZN at 30=gain of$60,000
Left uncovered a gain of $60,000 is assumed as capital gains subjected to 2000 tax year..
Versus 2K AMZN short sold at $30=$60,000
2K AMZN covered at $18=36,000
Thus leaving capital gains of $24,000
If this is the rule, then I would think all uncovered short sales in 2000 are subjected to capital gains in 2000 for the full amount of the sale..which likely would influence short sellers to repurchase before the deadline, or pay out the taxes on the sales??
H&R Block does my taxes and they are only concered with 2 numbers..What amount of purchases did I make, and what amount of sales did I make...the difference being realized Gains or losses for the year...
Thanks,
signed, not the sharpest pencil in the drawer AKA Tsio |
