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Strategies & Market Trends : Trade/Invest with Options Jerry a Point & Figure Chartist -- Ignore unavailable to you. Want to Upgrade?

To: DismalScientist who wrote (4702)	1/1/2002 11:43:51 AM
From: Dan Duchardt	Respond to of 5893

Alan, It is my understanding that on a long trade - the effective date for tax purposes is the trade date, so any long sold on 12/31/01 would be a tax gain or loss in 2001. But for a short the effective date is the settlement date - 3 business days after the trade. The instructions for Schedule D specify that the trade date is to be used for purchases and sales of stocks and bonds. In the event you deliver stock to cover the short, instead of buying to close, the instructions say to use the date of delivery. There is no mention of "settlement" dates. I am not a tax professional, just passing along what I have read. The link you posted is a good place to ask the question, but I would not hesitate to report the trade as closed based on the IRS instructions. Dan