Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: CarlErikson Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Arbitrage and taxes Date: 10/25/1999 12:53 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement