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Financial Planning / Tax Strategies


Subject:  Taxes and short sales Date:  7/8/2000  12:13 AM
Author:  KLib Number:  37210 of 128039

I own 100 shares of XYZ that I bought at 100. I went short 100 shares against the box at 90. The stock is now at 95. When using my original shares to cover the short how are tax implications computed?

a) My assumption is that I subtract the short sale price of 90 from the original basis of 100 for a 10 point loss.

b)Does the current market price of XYZ (i.e. 95)at the time of covering figure in this any way?

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