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ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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I have shorted an ETF with the symbol TLT. My question relates

Customer Question

I have shorted an ETF with the symbol TLT. My question relates to the tax treatment of the finance charges dividends, and capital gains and losses. Are the dividends and finances charges fully tax deductible? when I close out the position is the gain or loss short term or long term? TLT represents long term treasury bonds.
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Welcome to the site. I'm PDtax, and will be helping you today. My answer assumes you are not a trader eligible for business treatment of your investment. The interest of investment interest, an itemized deduction, is limited to investment income for deductibility.

Maybe you hold pro shares20 short, which is a mutual fund. It is designed to gain when the treasuries interest rate increases. This fund will pass through gains or losses based on their transactions, and you will have gain or loss on sale based on your holding period.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.

Customer: replied 1 year ago.

you did not answer my questions

Expert:  PDtax replied 1 year ago.
I did. I know of two ways to short that index, and one was by buying into the fund I mentioned.
If you bought options against the index:
Your financing interest of an itemized deduction, subject to the investment interest limitation.
I don't see capital gains padded through to you if you own options.
Your investment is typically short term capital gain or loss.
You did not mention what your holding period or what you bought.
PDtax
Customer: replied 1 year ago.

I made no mention of options. maybe you should opt out and give someone else a chance

Expert:  ShawnA replied 1 year ago.

Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. Retired CPA

Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. Retired CPA

Another expert here.

I will offer you two choices.

The first (and easiest) is a fee of 8.00 and we can talk as long as necessary to answer your questions.

The second is to text here back and forth as I will need some additional information,

Please let me know if you are interested in either option and which one.

If you are interested in the call (I almost always learn information on the call that effects my answer) all you need do is ask. I will then send you the offer and once you accept I can share my telephone number in a private screen.

Should you decide not to utilize my expertise there is no further action required on your part.