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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (75985)	4/26/2001 10:22:47 AM
From: Larry Brubaker	Respond to of 99985

Zeev, on a short, one must mark it to market when a stock becomes substantially worthless at the time it becomes substantially worthless. No avoiding paying capital gains.

To: Zeev Hed who wrote (75985)	4/26/2001 12:10:44 PM
From: Dennis O'Bell	Respond to of 99985

I double checked with my broker (fido) - as someone else just mentioned short sales need not be marked to market at year end, it really depends on whether the stock is effectively worthless, which point you will finally have to pay the taxes. Also as with any short sale, your broker does have the right to mark to market at any time, though this doesn't seem to pose a problem with the ETYS type scenarios.