Short Sell and buy to get a dividend.

Bob111 · Jul 21, 2011

Quote from JSim:

That was my initial thought. I was told that Short selling is basically a polar opposite of buying in all respects.

I have been told this before, funny how it always in in conjunction with stock trading.

This appears that you are not required to repay the dividend on a short sell if you keep the short sale open for 45 days +. I'm going to read this article now.

not required? do you really believe that you can choose to pay or not to pay?they will be automatically subtracted from your account.

it's much simpler than that.you have to pay taxes on dividends you receive(soon to be at highest rate in your tax basket)
and you can't deduct losses from payments in lieu. so if you like to fuck yourself twice on this part alone-then go head..sodomize yourself in all holes with your dividend play

joshuabelanger · Jul 21, 2011

In the field of buy and sell business, you should be wise on making decisions. Do not just depend on what others are saying. Be professional on every move that you will make. Failures may come in your way but try to make all of your investments a successful one.

JSim · Jul 21, 2011

Quote from rmorse:

I don't think the IRS article says that. I believe it says you can't expense the dividend unless you meet the holding period,however you can add it to the cost of the short sale. Either way, there is no way to profit from such a trade. You only lock in a loss from interest and comm.

Your right, just read the whole thing. It deals with taxation of the dividend owed on the short sale.

Quote from Bob111:

not required? do you really believe that you can choose to pay or not to pay?they will be automatically subtracted from your account.

it's much simpler than that.you have to pay taxes on dividends you receive(soon to be at highest rate in your tax basket)
and you can't deduct losses from payments in lieu. so if you like to fuck yourself twice on this part alone-then go head..sodomize yourself in all holes with your dividend play

I assumed the article was in some way relevant to my initial question. "Deduct these payments" was in reference to taxation not the owed dividend payment. And of course i love to lose $, isn't that why everyone's here?

Quote from joshuabelanger:

In the field of buy and sell business, you should be wise on making decisions. Do not just depend on what others are saying. Be professional on every move that you will make. Failures may come in your way but try to make all of your investments a successful one.

Confucius say?

So in conclusion, short selling and buying a stock in order to get a dividend wont work because i will owe the dividend while simultaneously receiving it and will be taxed on the sum of money i wont actually be reviving. Glad i was able to work this out.