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An investor sells short 1,000 shares of ABC for $50 per share on July 1, 2016. On July 3, 2017 the investor buys 1,000 shares
An investor sells short 1,000 shares of ABC for $50 per share on July 1, 2016. On July 3, 2017 the investor buys 1,000 shares of ABC for $35 per share. On July 5, 2018 the investor delivers the 1,000 shares acquired on July 3, 2017 to close the short sale. Based on Sec. 1233 when does the investor recognize the gain/loss? How much is the gain/loss? Is the gain/loss long term or short-term?
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