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It's a constructive sale of the shares you hold long. You need to report as if the short was closed using the shares you hold long
Then depending on how these positions are closed out in the future, you'll have to do some more reporting (mainly the disposition of the long position) taking into account that you have already reported some gain or loss this year.

Let me repeat this in my own words to be sure I got it right.

I report the sale of 100 shares, gain/loss determined by the cost-basis and short-sale price, as if closed, even though technically one brokerage thinks it is still open. (Next year) when I deliver the long shares to the brokerage holding the short, they will close the short (which shouldn't generate any reporting) and I will report the sale of the remaining shares if/whenever I make that sale.

Thank you very very much for the prompt and complete answer.

This boards rocks !

- Danny
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