Short Sellers Should Not Rely On Brokers For IRS Reporting (Recording)
Sep 28, 2016 at 4:15 pm EST
Traders are on their own when it comes to tax compliance for short sales. Brokers don’t report constructive sales on appreciated financial positions on 1099-Bs, and many miscategorize stock borrowing fees as interest expenses.
Join trader tax expert Robert A. Green, CPA as he explains complicated tax rules for short sale transactions and expenses:
- Short sales against the box.
- Constructive sales on appreciated positions.
- Special rules for short-term vs. long-term capital gains and losses.
- Using tax compliant software.
- Dividends and “payments in lieu” of dividends.
- Stock borrow fees vs. interest expenses.
- Investors face limitations on deductions.
- Traders with trader tax status & Section 475 bypass short sale problems.
- Tax compliance tips and examples.