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Tax Center

Short Sales

Gains and losses of short sales are treated similarly to gains and losses of other positions. The key differences include:

  • A loss is not deductible until the replacing shares have been delivered
  • Gains and losses are reported in the year during which the position closes
  • Gains and losses are generally treated as short-term regardless of the holding period

Because short sales can offer a more complex tax situation, it's important to discuss your specific details with a tax professional.