This postscript discusses the SEC's final
short sale rule, approved by a vote of 3-2 on February 24, 2010.
The 2003 SEC
short sale rule proposal was broad and instructive.
Furthermore, the
short sale rules (see Q 7643) and tax straddle rules (see Q 7698 to Q 7705) may require a tolling or recalculation of an individual's holding period.
Securities partnerships engaging in short sale transactions may be subject to the
short sale rules of IRC Sec.
In applying the
short sale rules, a securities futures contract (see Q 7693) to acquire property will be treated in a manner similar to the property itself.
1091 and later extended to the
short sale rules with the addition of Sec.
For an explanation of the
short sale rules, see Q 7642 to Q 7644.
In applying the
short sale rules (see Q 7642 to Q 7649) a securities futures contract to acquire property will be treated in a manner similar to the property itself.
If none of the foregoing exceptions or elections applies or has been made, the straddle will generally be taxed under the loss deferral, wash sale, and
short sale rules explained below.
In applying the
short sale rules, a securities futures contract (see Q 1072) to acquire property will be treated in a manner similar to the property itself.
But a capital gain realized on the exercise of a put--other than a "married" put (see Q 1059)--is, under the
short sale rules, a short-term capital gain if: (1) as of the date the put was acquired the underlying stock had been held by the put holder for a period of time that is less than the long-term capital gain (or loss) holding period for that stock (see Q 1417), or (2) the underlying stock was acquired after the put was purchased but on or before the date the put was exercised.
In applying the
short sale rules (see Q 1021 to Q 1028) a securities futures contract to acquire property will be treated in a manner similar to the property itself.
