If I have a short sale still open at the end of the year, how should that sale be reported on my tax return in the year that the short sale was opened?

[jgoode0417]

Basically, I was audited by the IRS many years ago for not reporting the sale (even though I had not closed out the trade).  So I'm not sure how to handle.

[Mike9241]

Short-sale of what? are you a trader that has made the 475(f) mark-to-market election? 

Why not ask your broker if it will reported to the IRS for 2023 if it is not closed out by year-end.

. 

[jgoode0417]

Sorry for not being more specific...I am referring to a stock short-sale; I am not a trader, just an investor who sometimes holds short positions for short periods of time.

[fanfare]

For stocks and options on stocks, only cloaed positions are reported on Form 8949.

@jgoode0417