Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Alan Bankman who wrote (59131)	1/3/2000 2:08:00 PM
From: waverider	Read Replies (1) \| Respond to of 152472

Ego alert! <H>

To: Alan Bankman who wrote (59131)	1/3/2000 3:50:00 PM
From: DaveMG	Read Replies (1) \| Respond to of 152472

Alan..Thanks very much for posting this tax stuff.. BUT, if you write calls and buy puts at the market price, the IRS treats you as if you sold the stock. You run afoul of the "constructive sales" rules. Does the entire transaction have to be consummated for the constructive sales rules to apply, ie, presumably you can put on the hedge and back out of it, paying short term income tax on the options and your underlying cost basis is not affected. What if you simply sell covered calls, let the contract run it's course and the stock is exercised out beyond the 1 yr cap gains holding period? TIA.. Dave

To: Alan Bankman who wrote (59131)	1/3/2000 5:22:00 PM
From: Jill	Read Replies (1) \| Respond to of 152472

This tax stuff makes my head spin! I really appreciate all the posts, and at the same time, I cringe at thinking about it all. I hated doing taxes before I started investing...and that was fairly straightforward!