SI
SI
discoversearch

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.
Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: dougSF30 who wrote (117074)6/21/2000 11:38:00 PM
From: Elmer  Read Replies (1) | Respond to of 1570913
 
Re: "Elmer, Tax Strategy! Excellent, something we can all agree upon"

My God! I've gotten two compliments tonight!! Am I really on the AMD thread????

Re: "Question for you: Suppose I hold a January bull call spread. (I do, long 90's short 120's) Suppose that on Dec 31st (or the last trading day), AMD is at, oh, 200. May I buy back the 120's, at huge short term loss for 2000, and sell the 90's day 1 of 2001, thereby delaying much of my payment to the IRS by a year? It sounds too good to be true... surely they have some nasty little provision designed to defeat this? thanks for your tax insights, by the way"

Please don't think me a tax expert because you should be consulting your CPA or other professional advisor but I think you can do what you propose and spread it across two years.

EP



To: dougSF30 who wrote (117074)6/22/2000 3:54:00 AM
From: Petz  Read Replies (1) | Respond to of 1570913
 
Doug, unfortunately there are very complex rules for closing out half of a spread at a loss and the other half at a gain the next year. I believe that if you take the loss in 2000, you have to "mark to market" the other half of the spread, i.e., act as if you sold it on December 31 and then bought it back the same day.

Petz


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News