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To: Tai Jin who wrote (11071)2/20/1999 9:12:00 PM
From: peter michaelson  Respond to of 16892
 
Tai Jin:

I believe that the tax treatment on dividends you pay on your short holdings go to increase the tax basis of your re-purchase.

Something like that. It is written in one IRS document or the other. I am pretty sure you do not deduct it as an investment expense, nor do you net your positive and negative dividends.

I would recommend asking Colin Cody on one of the tax threads at SI or querying TurboTax.

Peter