Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 252.25

+0.9%

Nov 28 9:30 AM EST

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To: Jacob Snyder who wrote (61573)	3/6/2002 4:28:31 PM
From: Sam Citron	Read Replies (1) of 70976

Does this count as "effectively closing my position", for tax purposes? Careful. The rules are complicated. As I understand them: If the call write is in the money when written, but not too deeply, then the holding period is suspended while the call is in place. If the call is deep in the money when written and the stock is not yet held longterm, then the holding period for the stock is eliminated. As long as the equity option was out of the money when written, it has no effect on the holding period of the stock. Better check with an advisor if you have questions, but see irs.gov pps. 55-56 CAVEAT: This should not be relied upon or considered tax advice. The writer is a layperson, not an accountant nor an attorney. Actually I am a retired attorney (inactive).

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