Submitted by bnabin51 t3_11co35x in wallstreetbets
emielbo2 t1_ja45bgi wrote
Its counted as investment interest in the US, assuming you hold the position for longer than 45 days. If you held it for shorter than 45 days the cost gets added to your purchase cost. In the end both results are the same (increasing your cost base), just the item on your taxes changes.
Edit: for tax purposes you made a loss (option 2).
bnabin51 OP t1_ja48a3c wrote
That's what I thought too, but this happened: https://www.reddit.com/r/stocks/comments/11clbzq/is_the_dividend_paid_on_short_positions_tax/
Viewing a single comment thread. View all comments