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To: MileHigh who wrote (28055)8/29/1999 10:43:00 PM
From: jmac  Read Replies (1) | Respond to of 93625
 
Never heard that before. I have been trading options in taxable accounts for mroe than 20 years. Do you have a code cite?



To: MileHigh who wrote (28055)8/30/1999 12:47:00 AM
From: Jdaasoc  Respond to of 93625
 
MH:
I have no idea unless I ask my accountant. I guess it comes down to the fact that the IRS only gets sale price information. So if you didn't exercise PUT the only way IRS would know is if they audited you. Any one know how that experience goes. Do they delve into heavy details such as PUT buying?

john



To: MileHigh who wrote (28055)8/30/1999 10:53:00 AM
From: rel4490  Read Replies (1) | Respond to of 93625
 
MileHigh, puts do not restart your holding period for long stock. Puts do suspend the computation of the holding period, because you are deemed " not at risk" for the time you own the puts. So if you have held the stock for 9 months and then buy puts, your holding period is held at 9 months until you sell the puts. As soon as you sell the puts you can begin adding to the 9 month holding period.