Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 40.51

-7.4%

3:59 PM EST

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To: chomolungma who wrote (167317)	7/2/2002 12:19:26 PM
From: The Duke of URL©	Read Replies (1) of 186894

" The beauty with a stock that goes to pennies and stays there is you never have to pay taxes on your short sale gain! By avoiding 39% federal taxes and state taxes if applicable, you almost double your short sale return." Well, not exactly. While it is true that a gain requires a "sale or exchange" of an asset. And it could be argued that if you never cover, you never have a sale or exchange, technically at some time the "debt" of the certificate that you owe the buyer becomes forgiven and at that time you have "forgiveness of indebtedness income" under sec. 61 of the Internal Revenue Code and what is called the "Crane" rule. You didn't help WCOM with their accounting, did you? :)))

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