|
Posted by Rich Carreiro on January 4, 2008, 2:58 pm
Please log in for more thread options
> I have a big open short sale position from November 2006. On my 2006 tax
> return I reported the sale proceeds and noted it as an "open short sale". I
> did NOT cover the short during 2007. Do I need to report the "still open
> short sale from 2006"
No.
The only reason you had to report on your 2006 return was so that
the IRS wouldn't try to tax the short-sale proceeds. But since
there were no short-sale proceeds from the position in 2007,
there's nothing to report.
> or can it just wait until the year that I actually
> cover the sale?
Correct.
> Also, I made some "payments in lieu of dividends" on that short sale. Can I
> offset some actual dividends received with these dividend payments made?
Not directly. It's an investment expense, going on Sched A. You
can't directly offset it against dividends.
--
Rich Carreiro rlc-news@rlcarr.com
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap