How do I report dividends that I paid out on a stock that I have sold short?
- posted
17 years ago
How do I report dividends that I paid out on a stock that I have sold short?
Depending on the details, as investment interest or added basis when you cover the short. See "payments in lieu of dividends" in IRS Pub 550.
-- Phil Marti Clarksburg, MD
I am reasonably certain that "short dividends" are reported as investment interest expense.
-- Bruce E. Cobern, CPA mailto: snipped-for-privacy@pipeline.com
According to IRS Pub 550:
-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us
Does the 45 days mean the total time the position is open, or does the 45 days mean the from the time I went short until the time the dividend was paid out by me?
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