It is immensely complex. There is also a huge difference between reportable transactions versus taxable transactions.Hmm ... I was not aware of that. Perhaps, because I never do "purposeful manipulations", in the first place.
No, they won't, if you do purposeful manipulation like confounding a long position with an option position on the same equity they have no way to account for it.
Though, it is strange that "they would have no way to account for it" - it seems pretty straightforward to me even for the stock/option mix.
Reportable transactions are governed by clear objective criteria - same CUSIP, same account. This can be programmed. Note, just because something is reportable doesn’t mean it’s taxable.
Note, on the flip side there are lots of taxable transactions which are not reportable. The classic example is when you sell in one brokerage and buy in another. Obviously this could cause a wash sale but there is no way to report this.
Now, is this purposed transaction reportable? No. Is it taxable? Well, I am not going to offer specific tax advice on the internet but I would say it certainly suggests one.
Statistics: Posted by alex_686 — Mon Dec 02, 2024 5:44 am — Replies 9 — Views 355