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Subject:  Re: shorting a long position Date:  12/29/1998  9:03 PM
Author:  TMFTaxes Number:  7746 of 124591

[[ Hi All,]]


[[ Question:

If I currently own a stock long, can I sell short the same number of shares and
neutralize my position? For example, if I own 200 shares or AOL, can I short
the 200 shares at the same time?]]

Sure. But you may learn much more first hand about the new laws regarding constrictive sales of appreciated financial position. In effect, the law says that if you "short against the box" (which is what you are really talking about), Uncle Sammy will treat this "neutral" position as if you SOLD the sares.

Pursuant to changes made by the Taxpayer's Relief Act of 1997, taxpayers must recognize gain (but not loss) upon a constructive sale of any appreciated financial position in stock