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To: H James Morris who wrote (117432)	2/11/2001 6:35:23 PM
From: manalagi	Respond to of 164684

the gains on a short sale is always treated as short term by the the IRS. Are you sure about that? Yes. The rationale is: Holding period is the time you hold the security. If you short a stock (not against the box), you never own that stock. When you cover: you buy the stock and immediately give it back to the lender of the stock. Therefore, the holding period is practically zero minute regardless how long you are short. irs.gov The latest change made by Congress is the way to report shorting against the box where you realize the gains/losses the time you sell short. See Chapter 4 of IRS Publication 550.