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Financial Planning / Tax Strategies


Subject:  Arbitrage and taxes Date:  10/25/1999  12:53 PM
Author:  CarlErikson Number:  20026 of 127753

Suppose I have 2 online brokerage accounts and I bought 100 shares of Microsoft in one account. Later, I want to exit this position on a particular day but the 1st brokerage account is down and their phone line is busy. So I short 100 shares of Microsoft in the other account to lock in the profit at that particular time. Then later, when both brokerage accounts are working, I exit both positions simultaneously. What are the tax implications for this transaction? Can I just treat them as two independent transactions when I report them to the IRS? Or is there something else that should be done?

Thanks for any help you can give me,
Carl Erikson
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