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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (323)	6/3/1998 4:02:00 AM
From: zebraspot	Respond to of 1383

All: Can buying puts trigger a "constructive sale" when you also have a profitable long position in the underlying stock? I've been told that the new tax rules made put hedging a no-no. Right or wrong? I know you can no longer do a short-against-the-box without triggering "constructive sale" --unless you cover the short by Jan 31st of the next year and then stay fully exposed in the long position for 60 days minimum thereafter. Thanks for any feedback.