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Technology Stocks : Zitel-ZITL What's Happening -- Ignore unavailable to you. Want to Upgrade?

To: Jacques Chitte who wrote (17838)	3/25/1999 3:28:00 PM
From: Michael	Respond to of 18263

ZITEL CP 3,566,717 new month's short interest number 4,085,190 last month's short interest number -12.7 per cent decline 359,542 average volume

To: Jacques Chitte who wrote (17838)	3/25/1999 3:32:00 PM
From: Michael	Read Replies (1) \| Respond to of 18263

My Friend: I do not think one can possible make a short gain into a long term capital gain. I do believe IRS clear states that short gains are all short term, regardless of any type of hedging. michael

To: Jacques Chitte who wrote (17838)	3/25/1999 3:39:00 PM
From: Marconi	Read Replies (1) \| Respond to of 18263

Hello LRR: I'm not clear on the structure of your boxed position you wish to obtain LT gains. I'll take a shot anyway. Generally if you are not at risk (aggregating all accounts wherever) with long and short positions, I would expect you simply have a covered short for tax purposes. Wash sales and other rules can make the picture messier. If you actually have a position where you clear your short and have a remaining long position held for the appropriate time for LT gain, then I would think you could take the LT gain. But Zitel is in a downtrend, so unless your basis is under 2, if you were clear of your other positions, you still could obtain a LT gain for that gain if you held the gain LT. I am using boxing this year as a technique consistent with a traders market (and leery of all the crazies in the market, and sloshing madly around with money to boot, too). My understanding is I can go in and out of positions ad infinitum as long as I close the positions in boxed security by the end of the year. The deferring of gains through shorting at the box is no longer allowed. You must recognize the gain for tax purposes. Another caveat is if you can qualify as a trader, then certain rules for a mere investors do not apply. The requirements for trader status for tax purposes are stringent. I am not a tax advisor, so you are getting opinions based on my personal experience, not expertise. If I recall, I think it is IRS publication 550 that goes through many of the rules for treatment of gains and losses. The publication and others are available through the IRS site in PDF format. I hope this helps. Best regards, m And rats, still cannot get into Datek for the last 5 trading hours so far out of 5-1/2 today....