Replies to post #4977 on Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

Why wait around on a short position?

The reason to wait around is because as long as the trade is still open, you do not have to pay the tax on the profit. If the 17.5% warrants have a ten year expiration, then the tax would not be owed until tax year filing for 2025. Before the IRS changed the rules after the LTV naked short problem, the tax rules was that the trade was not considered closed until covered; so if the shares got cancelled, and the trade was never closed, then the tax was NEVER owed.

After that the IRS changed the rules to when a short position could be constructively considered closed; i.e. the stock no longer traded.

Louis J. Desy Jr.