Short Sale

Report short sales in a “closed position” in Schedule A and Schedule C, Part I. Report short sales in an “open position” in Schedule C, Part I only. 

Short Sale: Examples of Short Sales Reported on Schedule A

Short Sale: Examples of Short Sales Reported on Schedule C, Part I

For You, Your Spouse, and Your Dependent Children – “Closed Position”

Schedule A

Report a short sale in a closed position if the short sale produced more than $200 during the reporting period.

Block A: Provide the exact name of the security you shorted (e.g., “Xylophone Technologies Corporation”).

Block B: Mark the column labeled “None (or less than $1,001).”

Block C: Report the total amount of income that the short sale produced during the reporting period by marking the appropriate “Amount” column. In addition, indicate the type of income by marking the column labeled “Capital Gains.”

Schedule C, Part I

Report any liability owed to a broker that was more than $10,000 at any time during the reporting period.

Creditors: Provide the name of the broker as well as the broker’s city and state of business.

Type of Liability: Provide the name of the security shorted and write “short sale, closed.”

Date Incurred: Provide the year in which you opened the short position.

Interest Rate: Provide the interest rate charged by your broker on the short position.

Term: Write the term “on demand.”

Category of Amount: Mark the appropriate value category.

For You, Your Spouse, and Your Dependent Children – “Open Position”

Schedule A

Do not report a short sale that is in an “open position” in Schedule A.

Schedule C, Part I

Report any liability owed to a broker that was more than $10,000 at any time during the reporting period.

Creditors: Provide the name of the broker.

Type of Liability: Provide the name of the security shorted and write “short sale, open.”

Date Incurred: Provide the year in which you opened the short position.

Interest Rate: Provide the interest rate charged by your broker on the short position.

Term: Write the term “on demand.”

Category of Amount: Mark the appropriate value category.

Click Here for Frequently Asked Questions 

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.