An investing technique which is undergone for the purposes of creating tax benefits. To do this, it involves purchasing specific futures or options contracts where the loss of one contract will balance out the gain of another contract, and push back the tax impact until the next year. This technique is no longer practiced, as laws have been passed which require most gains and losses to be realized at the end of the calendar year.
Related information about tax straddle:
- Tax Straddle - Financial Dictionary - The Free Dictionary
Technique used in futures and options trading to create tax benefits. For example , an investor with a capital gain takes a position creating an artificial offsetting ...
- Tax Implications of Straddles - G2 FinTech
Feb 15, 2012 ... A “tax straddle” is a straddle that has been constructed solely as a tax ... constructs a tax straddle to artificially create taxable losses in order to ...
- What is tax straddle? definition and meaning
Definition of tax straddle: An investing technique which is undergone for the purposes of creating tax benefits. To do this, it involves purchasing specific futures or ...
- Tax Straddle: Definition from Answers.com
technique whereby option or futures contracts are used to eliminate economic risk while creating an advantageous tax position.
- tax straddle - Invest Definition
tax straddle definition: A combination of two similar futures contracts (one bought and one sold) that tend to move in opposite directions so that a loss on one is ...
- The Silver Butterfly Case – Straddles 101: Why tax straddles are ...
Apr 4, 2012 ... Historically used to avoid paying taxes, a “tax straddle” uses these two positions ... To understand how a tax straddle might affect capital gains ...
- Taxes and Investing Brochure - The Options Clearing Corporation
Offsetting Positions: The Tax Straddle Rules. 17. □ Qualified Covered Calls. □ Identified Straddles. □ Physical Settlement Rule. □ Mixed Straddles. Non-Equity ...
- Tax-Straddle Rule Law & Legal Definition
Tax straddle rule is a rule preventing undue deferral of tax on income or conversion of ordinary income or short-term capital gain into long-term capital gain by ...