Report short sales and income from short sales in Part 6.

For You, Your Spouse, and Your Dependent Children

Part 6

Open Position

Report a short sale in an open position if the value of the shorted security was more than $1,000 at the time the position was opened. 

Description:  Provide the name of the security you shorted (e.g., “Widgets Unlimited”) and indicate that the short position is open.  In addition, in lieu of selecting a category of value, provide the following information: (1) the number of shares shorted and (2) the price at which you shorted the shares.

EIF:  Select “N/A.”

Value:  Leave this field blank.

Income Type and Income Amount:  You should not have any income to report, so select “None (or less than $201).”

Closed Position

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

Description:  Provide the name of the security you shorted (e.g., “Xylophone Technologies Corporation”) and indicate that the short position is closed.

EIF:  Select “N/A.”

Value:  Select the category for “None (or less than $1,001).”

Income Type:  Specify the type of income.

Income Amount:  Select the category that corresponds to the total amount of income received during the reporting period.

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