In that case, you must recognize gain as if the short sale were closed when the property became substantially worthless. Entering into a short sale may cause you to be treated as having made a constructive sale of property.In that case, you will have to recognize gain on the date of the constructive sale.However, when a corporation has converted its status from C corporation to S corporation or acquires assets from a C corporation in a tax-free transaction, it may be subject to a corporate-level “built-in gains” tax in addition to the tax imposed on its shareholders.The concepts underlying this tax are relatively basic, but its application can be complex.You recognize a 0 short-term capital gain from the constructive sale. 1.1233-1(a)(1), the settlement date is the delivery date, the date on which the actual security or cash changes hands.
The tax is imposed upon an S corporation that has some history—however brief—as a C corporation before the effective date of its S corporation election.
A method of choosing individual securities with the goal of outperforming the general markets and/or indexes.
Active managers rely on research, market forecasts, and their own judgment and experience in selecting securities to buy and sell.
Fund manager actively analyzes and trades in securities that meet the overall objective of the fund.
As its name implies, an active fund management style is more aggressive than passive fund management style.