Replies to post #63455 on Wave Systems Corp. (fka WAVXQ)

[player1234]

And if a stock goes bk as km did? Are you saying there is no recorded gain since you didn't officially close the position?

You can believe me or not. That's your right. A good accountant or someone with lots of experience on the issue will disagree with you. You will quickly find the rules are a bit different for short sales under many circumstances.

Good luck to you.

[1260]

Player & Crazy Larry,

CL, Player is correct about the shorting. The other misunderstanding is about "what if bk and you don't have to cover".

IRS code says that the moment a stock becomes bk, worthless or non-liquid, then you owe the taxes on your short position, if any are due.

IRS is slow, but they are thorough on checking these small points. They like compound interest.

Just my comments

1260