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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: LemurHouse who wrote (3081)	11/26/2001 9:32:49 AM
From: LemurHouse	Read Replies (1) \| Respond to of 5205

Dan: since the last post I've dragged out my McMillan to have a squint at his tax chapter. Is your objection to shorting against the box based on the 30 day wash rule, or is it something specifically against shorting against the box? I see the problem with the wash rule (althlough presumably this can be overcome by waiting more than 30 days to cover the short?) but I still don't see a specific prohibition re shorting against the box. Any clarification most appreciated. Thx. PS: I notice McMillan does mention shorting the underlying as a possible way of delivering stock when assigned, but doesn't address the mechanics of how to do it or the tax implications.

To: LemurHouse who wrote (3081)	11/26/2001 9:34:02 AM
From: Dominick	Read Replies (1) \| Respond to of 5205

I'm not a tax expert and obviously broker documentation is the way to go. But in absence of this I found that contemporaneous documentation containing time, date and names making clear the intent has just as much weight. Remember the job of the auditor is to CREATE problems to obtain tax revenue. Dominick

To: LemurHouse who wrote (3081)	11/26/2001 11:20:38 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 5205

Andrew, In your opinion does this mean I have not satisfied the requirements re designation of shares? There are a couple of tax professionals who post on the tax threads who have expressed the opinion that you must have something in writing from the broker for it to stand up to an audit. I have no personal experience with it, and I'm not the expert, but the issue has been raised many times and the responses have been consistent. Subject 17266 Subject 5727 I replied to the short against the box issue in your follow-up message. Dan