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To: Mama Bear who wrote (5154)12/29/1997 2:37:00 PM
From: Oeconomicus  Read Replies (2) | Respond to of 27307
 
I'll bet the IRS would rule this a constructive sale.

Barb, if a collar can both limit downside exposure and defer taxes, why would half a collar be a "constructive sale"? The stock position would still be at risk on 60% of its value. Couldn't find anything on what constitutes a "constructive sale" in my tax guide and I've spent enough time on it already considering that I am not long, so I guess we'll just have to wonder.

Bob