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<<The Senate and House tax proposals will grandfather 'short against the box' transactions as of June 8, 1997. Does anyone know what the current Clinton proposal states regarding this?>>

The White House has never liked "short against the box" positions, and has stated that they would like to rid the tax code of the "loophole" that allows these positions. Without any grandfather position.

Only time will tell what will happen with the proposal. But since we are still a few months from the end of the year, the impact (if these positions have to be wound down) shouldn't be too material.

Most folks think that a "short/box" position will allow them to turn a short term gain into a long term gain (and a max 28% tax rate), while protecting profits at the same time. Nothing could be further from the truth.

Keep watching the news for breaking details. Once (if??) the bill gets out of Confrence, and is signed by the president, I'll give a brief rundown of the provisions here on the web site.

TMF Taxes
Roy Lewis
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