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Unknownirish t1_ja4cly5 wrote

Reply to comment by Telinger in Tax offset on paid dividends by bnabin51

Sounds to me a dividend hit his account during his short position (which was probably IDK, OP! a put position), and he likely exercised his position his way.

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bnabin51 OP t1_ja5f74y wrote

I had short calls (without shares) before ex-dividend and the call owner exercised them before ex-dividend, leading me to be in short positions of stocks. So, I had to pay dividends to the person from whom I borrowed the shares. https://www.reddit.com/r/stocks/comments/11clbzq/is_the_dividend_paid_on_short_positions_tax/

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Unknownirish t1_ja5fqmg wrote

Dammmmmn you keeping those L's or can you share

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Telinger t1_ja4if0m wrote

That's only possible if he owns the shares on the ex dividend date. An option is not share ownership.

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Unknownirish t1_ja4ijs2 wrote

It is possible idk OP should just be happy lol that he has a profit to pay taxes lol

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Telinger t1_ja4jcir wrote

If he bought a put and was assigned he would own the stock. If he then held the stock through the ex-dividend date then he would get the dividends. However, this is not how I read OP's post.

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