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Subject:  capital gains when you short Date:  7/13/1999  7:30 PM
Author:  fling Number:  17267 of 127519

I exercised and held a good deal of my former company's ISO's, and the stock's gone up quite a bit. I haven't yet fulfilled the 1-year holding requirement, and my income for this year is abnormally high due to ISO's I exercised and sold cashlessly, so I'd like to avoid selling them if I could.

I heard about shorting stocks, and wondered if that's a viable option. What are the tax implications for shorting a stock?

If I short it, and it continues to go up, can I use some of the exercised ISO's to cover the short? (I imagine I can ask my broker, but figured I'd ask here too, while I'm at it) If so, what are the tax implications of that?

Mucho thanks!
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