Tax Treatment of Short-Sale Dividends?

Discussion in 'Stocks' started by marshg, Jan 22, 2010.

  1. marshg


    if I'm short a stock and I have to pay out a dividend, how is that payment treated tax-wise? ie. is it offset against dividends I receive or treated as a short-term loss?
  2. muller


    oooh I didn't know one has to do that.
    File it as an expense, like the commissions you're paying.
  3. Dammit! I thought I was going to get rich by going both long and short a billion shares. Then just sit back and collect dividends on the long position..