Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (1918)	2/23/1999 10:29:00 AM
From: Mike da bear	Respond to of 5810

Thanks for the response, these are good considerations to keep in mind. mdb

To: Colin Cody who wrote (1918)	4/7/1999 2:10:00 AM
From: Mr. Aloha	Read Replies (1) \| Respond to of 5810

I understand that the recent law changes mean "shorting against the box" can cause your long-term capital gain shares to be sold in a "constructive sale" even if you don't want them to be. However, I heard there's an exception if you cover the short in a certain time period (within 30 days from the end of the year?). Does anyone know the specifics of this? Does this law affect options? In other words, if I sell call options and buy put options at the same strike price (synthetic short), is my long-term gain in my underlying shares in jeopardy? I'd like to hold my shares for many more years (deferring big gains), but would like to protect against short-term weakness using options or shorting. How can I do this without worrying about Uncle Sam saying I have to realize the gain? Thanks, Mr. Aloha