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One more double check...Bought stock X for $22, sold $23 strike call for $1. X gets called away for $23. I have held stock X for more than 12 months at the time X gets called away (Did not sell an "in the money" call). According to my reading of your explanation, my sale price would be $24 for tax purposes, so a $2 gain, all long term, not a sale price of $23, $1 long term gain, and short term option income of $1. Is that correct?

Thanks for you help,
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