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Short Sell Against the Box
Short Sell against the Box is a trading technique when investor wants to sell securities that he already owns. This is usually done in order to outflank and delay current tax obligations.
Selling short against the box in order to delay tax payments was possible until 1997, when Taxpayer Relief Act was announced, by which capital losses and gains earned from short selling against the box are not deferred any more. Until 1997, investor could delay taxes because he owned both long and short position in the security, which drove the net effect of both position to zero.
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