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Very familiar with how Short against the Box affects holding periods, but got asked this one today:

Person has 10,000 shares long (many years held)

Person, July 98, sells short 1000 shares, pockets the cash.

Person, Jan 99, covers short with shares in the box, for a tidy profit.

Is this a 99 taxable gain? Is there a date threshold (say, short on Dec 15, cover on Jan 1) where it is ruled a 98 gain? If not, is this a nifty way of pushing a gain (or loss for that matter) forward?
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