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Author: brewer12345 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121319  
Subject: Covered call and tax losses Date: 10/19/2001 4:20 PM
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I wrote covered calls on a stock that plunged in value and the shares were called today. I wrote calls twice netting about $1100. The sale of the stock will result in a taxable loss of approx $7500. The loss is short term. I won't get into the stock again for another 31 days if at all.

Just so I fully understand:

- Can I offset the gain on the options with the loss on the stock?

- Can I use the remaining loss on the stock to offset other dividends, interest and cap gains?

I'm under the impression that the answer to both is yes, but I figured I'd make sure.
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