How if at all do you report a short position on a stock that is still open at the end of the year? I have always ignored it until the return for the year in which it was closed.
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Short Sales
My 2 cents:
There is no reportable Schedule D transaction until the purchase side of the transaction is completed. As of 12/31/07, the holding period nor gain/loss is known.
PS: Just got back from Myrtle Beach. I so want to move there! -
1099B forms
I believe you have to report on Schedule D, as the Brokerage house will issue a 1099B, so you have to reconcile to the 1099B, but you would not show a gain or loss if the position was still open at the end of the year.
Here are a couple of links that might assist you.
SandyComment
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Stay Where You Are
WVguy, stay where you are! Especially if you are in the Southern Region around the Guyandotte or Greenbrier rivers. Or the New River Gorge. I guess everyone has their preferences, but if I lived in Myrtle Beach, I would treasure any moment I could spend in West Virginia. From Bluefield to Charleston and Harper's Ferry, possibly our nation's most breathtakingly beautiful state. Not to mention one of the easiest state tax forms and lowest tax rates.
Dirty little coal towns like Welch and Logan? Far from it. I've had more fun drinking beer with coal miners than anyone else. One night in Beckley these two guys came in and started drinking beer by the case. They were huge mountain men and no one dared to mess with them. After their tongues started to get a little loose, I found out they were none other than Hall-of-Famers Joe Jacoby and Russ Grimm of the Washington Redskins. What a blast!!Comment
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I would enter the sale amount and then on the next line enter - Open short offset- with the same amount in the buy column.
This way you report the sale for matching purposes and offset it with a balancing entry.
I do the same thing when there are ESOP's and the amounts are reported on a W-2 as well as a 1099B.Comment
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Thanks for the lesson!
I stand corrected on my gut response about short sales. Thanks for the lesson. This is part of the interesting and informative nature of this community board. S T and Ed Smith politely showed me the errors of my way. Now I know how short sales are reported. Thanks again!
Snaggletooth: WV is indeed a beautiful state but the combination of the ocean breeze and waves are so relaxing.Comment
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We were in MB last week too
I would not want to move there though. The traffic is horrendous and they have idiots running their city govt. Did you hear or read about them wanting to get rid of Bike Week? If I owned a business in that city I would run the entire council out of town.Comment
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Just a thought
If your client is a trader who has made a mark to market election you would need to report the short sales as if it had been closed as of 12/31. Otherwise no reporting.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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Skip Myrtle Beach.
Go a little further south down to Surfside Beach. The traffic isn't nearly as horrendous, the beach is just as nice, and there are plenty of restaurants & activiites for adults and kids. Of course, if you crave sitting in traffic jams, you can always drive 20 minutes to the north & get back into the Myrtle Beach mad rush for a few hours. ."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Pardon the slight detour here...
Myrtle Beach is too...whatever...hope you made it to North Myrtle Beach (once referred to as "OD" for Ocean Drive, and even a bit futher north near the SC/NC junction.
Oh yes - you DID eat some seafood at Calabash, right?
Actually, I'm a "mountain person" and the rhododendron and mountain laurel are just winding down in the upper elevations of the NC mountains. Do some hiking/driving around Roan Mtn.
FEComment
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