In previous years, I have never held a position over December 31. When I got the 1099 from the broker, it would show all the SELL sides of the trades and I would fill out the Schedule D accordingly.

This year, it looks like I might be short SPY over Dec 31 (if COT dictates). Two questions: 1.) Will I still get a statement from the broker stating that I sold X shares of SPY? 2.) If so, does the IRS look at that as income for that year?

Thanks,
Steve

Steve,

Yes, you should get a statement from your broker detailing your short sales for SPY. And the IRS will not consider it income until you close your position with a profit. Here is a link that explains the tax treatment of short sales…

http://invest-faq.com/cbc/tax-short-sales.html

Larry

Larry,

That link, along with your summary, completely answered the question.

Thanks,
Steve