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To: PAL who wrote (51144)	11/19/1999 8:34:00 PM
From: RoseCampion	Read Replies (2) \| Respond to of 152472

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.

To: PAL who wrote (51144)	11/19/1999 8:36:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 152472

>> All shorts (equity or option) are never considered LTCG regardless how long the time frame. Once again, please, for us tax planning impaired investors: Are you saying that the income derivce from writing covered leaps calls can never qualify for long term capital gains treatment, even if held for more that 12 months before the buyer exercises them? uf

To: PAL who wrote (51144)	11/19/1999 10:04:00 PM
From: Stu R	Read Replies (1) \| Respond to of 152472

Paul: I don't agree with your statement: "All shorts (equity or option) are never considered LTCG regardless how long the time frame." With respect to equities, I believe that generally, unhedged short sales held more than one year would qualify as LTCG. Of course the rules being discussed here are complex (because of certain exceptions). I agree strongly with your comment about checking with a competent CPA. For those interested in looking it up Code Sec.1233(a);Reg. 1.1233-1(a)(2) would be a good place to start. Rose, thank you for the put margin requirement explanation it was very informative and well explained. Stu