>Your short position must be closed within 30 days after the end of the year in which it was taken.
This is correct assuming technical corrections makes no retroactive change in this area. There is alot of discussion in this area.
>So do not short until Jan 1, 1998. Not too long to wait. This gives you until Jan. 30, 1999 to cover. This is not too bad
It's terrible! The risk is still present TODAY. You did not explain this to the person before. A short TODAY MUST be closed by Jan 30, 1998. While there is still an opportunity for tax deferral. There may not be sufficient time to convert holdings to long-term (the full 18 months).
>Not the ignoramous you thought I was. Huh Stu2j
I never said that. If you wish to give someone advice, you need to give them all the appropriate information so they can make an informed decision.