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Simple English definitions for legal terms

tax-straddle rule

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A quick definition of tax-straddle rule:

The tax-straddle rule is a law that prevents people from avoiding paying taxes on their income or converting short-term gains into long-term gains by disallowing the early deduction of a loss on one part of a straddle position while keeping the other part. A straddle position is when an investor holds contracts to buy and sell the same security or commodity, hoping to defer gains and use losses to offset other taxable income. This rule aims to ensure that people pay their fair share of taxes and cannot manipulate the system to their advantage.

A more thorough explanation:

The tax-straddle rule is a regulation that prevents individuals from deferring tax on income or converting ordinary income or short-term capital gain into long-term capital gain. This is done by disallowing the premature deduction of a loss on the sale or disposition of one leg of a straddle position while retaining the other, offsetting leg or position.

For example, if an investor holds contracts to buy and sell the same security or commodity, they may ensure a loss on one of the contracts to defer gains and use losses to offset other taxable income. However, the tax-straddle rule prevents them from prematurely deducting the loss on the sold contract while retaining the bought contract.

The tax-straddle rule has been greatly restricted by the requirement that gains and losses on commodities transactions must be reported based on their value at year-end.

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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