Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

I think that that specific tax loophole has been closed. You can no longer count the time you were short against the block to get LT Cap gains. The technique is however heavily used in hedging, for instance, people buy convertible notes or bonds or preferred stock and then sell short against that box (namely the equivalent number of shares upon conversion). The result (if done right) is getting in essence an infinite rate of return....