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To: Eddie Money who wrote (61418)	7/29/1998 4:03:00 PM
From: Joey Smith	Respond to of 186894

re:If I sell 1999 covered calls and end up buying them back in 1999 taking when do I pay taxes? Is it 1998 when I get the money from the sale or 1999 when I could potentially buy them back. Answer: 1999 when I could potentially buy them back. joey

To: Eddie Money who wrote (61418)	7/29/1998 4:05:00 PM
From: Ibexx	Read Replies (1) \| Respond to of 186894

I had a similar experience of selling shares of a stock "against the box" and closing the position on the subsequent year. I paid taxes on the year when the position was closed (my accountant did my returns). Ibexx

To: Eddie Money who wrote (61418)	7/29/1998 8:05:00 PM
From: Gerald Walls	Respond to of 186894

If I sell 1999 covered calls and end up buying them back in 1999 taking when do I pay taxes? Short sales of stock or options are become taxable events when the short is covered or additionally in the case of options when they expire. The term of any gain or loss is based on the period of time you held the investment. In the case that calls are exercised against you the price you received for the calls is added to the price you received for the stock when called and the term of the gain is based on the holding period of the stock. I don't know if selling covered calls or buying protective puts fall under the new anti-short-against-the-box laws if held over the new year. Futures have some weird-ass mark-to-market rules and are always considered x% long-term and y% short-term. Jerry don't play that game.