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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (30502)	3/8/1998 10:37:00 PM
From: CPAMarty	Read Replies (1) \| Respond to of 50808

You can go short against the box and defer the gain if: (1) the short transaction is closed before the end of the 30th day after the close of the tax year, 42 (2) the taxpayer holds the appreciated financial position throughout the 60-day period beginning on the date the transaction is closed, and 43 (3) at no time during that 60-day period is the taxpayer's risk of loss with respect to the position reduced by reason of a circumstance which would be described in Code Sec. 246(c)(4) (rules relating to suspension of the holding period where the risk of loss is diminished for purposes of the dividends received deduction) if references to stock included references to the position. 44 41 Code Sec. 1259(c)(3)(A). 42 Code Sec. 1259(c)(3)(A)(i). 43 Code Sec. 1259(c)(3)(A)(ii). 44 Code Sec. 1259(c)(3)(A)(iii). Thus, this exception is available only if, for the sixty days after closing a transaction, the taxpayer holds the appreciated position and at no time is the taxpayer's risk of loss reduced by holding certain other positions. 45 45 Conf Rept No. 105-220 (PL 105-34) p. 513. IN PLAIN ENGLISH In general, what you have to do is hold the long position for 60 days after you close the short part of, the short against the box arrangement, also you must close out the short position within 30 days of the end of the year you go short against the box