Replies to post #207265 on CMKM Diamonds Inc. (fka CMKX)

[famulus]

That's a lie, and a common myth, brye. When a security in which you are short becomes worthless it triggers a taxable event.

You really don't know much except what you read from the wing nuts, do you?

[janice shell]

AND he does not have to report the income gain.

Yes he does. We've covered all this many, many times in the past.

[BuzzOnDaBeach]

Yes he does. And when they cancel the original issue and re-issue, your trade is considered closed and you report the capital gain. I was short GX when they filed BK, never covered. When the original Global Crossing stock was cancelled, I had to file the capital gain just like any other trade.

Buzz