Why does short sale against the box defer capital gains?

GAAPIFRS · February 17, 2018, 5:37pm

this is what is mentioned in the cfa institute topic test…

S2000magician · February 17, 2018, 5:58pm

You’re not selling shares you own, so there’s no taxable event.

GAAPIFRS · February 17, 2018, 6:46pm

thanks S2000magician!

S2000magician · February 17, 2018, 7:24pm

My pleasure.

BraveBucket · February 20, 2018, 5:11pm

Legend.

S2000magician · February 20, 2018, 5:32pm

Serendipity.

When the reading on concentrated asset positions was added to the curriculum a couple of years ago, I wrote it up for Schweser, so I know it pretty well.