Constructive Sale of Stock

May 02, 2010 1 Replies

If you go long a stock and then later short the stock and keep the long position, the IRS treats this as a constructive sale and you are taxed on the gain that existed at the time of the short sale. What if you keep those long and short positions for a full year from the date of the short sale? Are the additional gains on one side of the position treated as long term capital gains?


And when did the holding period of the short sale begin?

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