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What are some important tax implications to take into account if you want to be a short-only trader? Also does the type of security you short matter?
That's helpful, thank you! Does the type of security I short matter in terms of tax implications?
Yes, the type of security you short can also impact your tax implications. For example, shorting exchange traded funds (ETFs) may have different tax implications compared to shorting individual stocks. Again, it's best to consult with a tax professional for specific advice on the tax implications of shorting different securities.