Put options and bankruptcy?

[taxman]

Quote from vhehn:


simple.if you don't cover the short there is no taxable transaction.its the exact opposite of holding a long and never selling.

I disagree. IRC Section 1259 nails you in this situation. If the stock gets delisted and you have no motivation to cover you're not deferring the tax, but escaping it entirely. This is clearly a constructive sale of an appreciated financial position.

 

[rtharp]

Quote from metooxx:

I would like to have that problem; with a 1,000 lot ...

Doesn't sound like a problem to have. I'd be happy to take that problem from you at no cost or even pay you a little bit to take it off your hands if that situation comes up

 

[metooxx]

Quote from rtharp:



Doesn't sound like a problem to have. I'd be happy to take that problem from you at no cost or even pay you a little bit to take it off your hands if that situation comes up

So would I is what I am saying ...