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strange gain/loss

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MZB

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Jan 12, 2012, 5:08:22 PM1/12/12
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On 10/27/11 I sold short bought bought back SPXW . These are puts on
the SPX index. It turned out to be a lousy trade,I lost on the deal.
However, on Gainskeeper (Ameritrade), it apportioned 60% of this loss as
a long term capital loss. The other 40% was short term. Why is this? My
holding period was 1 day.

I must be missing some quirk in the law or is this an obvious mistake (I
have no other such trades)

Mel

Arthur Kamlet

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Jan 12, 2012, 10:34:27 PM1/12/12
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I will point you to IRS Publication 550. There, search for
Section 1256 contracts.


If you are going to deal in section 1256 contracts and their derivitives
you should knowa little bit about their tax consequences.

--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

MZB

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Jan 12, 2012, 10:39:38 PM1/12/12
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Thanks Art. I learned a lot from your answer. I was totally unfamiliar
with 1256 contracts. I am now

Mel

terrable

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Jan 14, 2012, 2:38:52 AM1/14/12
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"MZB" <m...@noway.prudigy.net> wrote in message
news:jeo928$r1m$1...@dont-email.me...
And don't forget to use Form 6781 to report your Section 1256 contracts.


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