Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Trebor who wrote (2312)	12/6/1997 10:30:00 PM
From: Scott D.	Respond to of 42834

re: "shorting against the box" Isn't that shorting a stock you own to protect gains without selling and paying taxes? And isn't this a loophole that was recently closed? I am sure someone will clarify this.

To: Trebor who wrote (2312)	12/7/1997 12:20:00 AM
From: Jim O'Hare	Respond to of 42834

Greg,

To: Trebor who wrote (2312)	12/7/1997 12:48:00 AM
From: Jim O'Hare	Read Replies (1) \| Respond to of 42834

Bob, Shorting against the box is a tax strategy. Let's say you owned 100 shares of Intel and thought the stock had become overvalued. You would like to sell but it is November and you would like to defer your capital gain into the next tax year. What you could do is short 100 shares of intel while remaining long 100 shares; In reality you would net neutral intel. However you could wait until the next tax year and cover your short position and sell your long position --> deferring the capital gain. I think however next year "shorting against the box" will not be a legal tax strategy anymore.