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If an investor owns one share of Berkshire Hathaway class A common stock and he sells 15 out of the money calls on Berkshire Hathaway class B common stock are the calls qualified?
I refer the reader to the following URLs:
https://ttlc.intuit.com/questions/2586341-a-question-about-berkshire-hathaway-and-the-wash-rule?jump...
http://www.law.cornell.edu/cfr/text/26/1.1092(c)-1
Now, if he buys back those calls at a loss, is the loss deducible? Does the straddle loss limit rule apply?
Note that one class A share is convertible to 1500 class B shares. However, you cannot convert 1500 shares of class B to one share of class A. Also note that one class A share has the same voting rights as 10,000 class B shares.
Bob
I refer the reader to the following URLs:
https://ttlc.intuit.com/questions/2586341-a-question-about-berkshire-hathaway-and-the-wash-rule?jump...
http://www.law.cornell.edu/cfr/text/26/1.1092(c)-1
Now, if he buys back those calls at a loss, is the loss deducible? Does the straddle loss limit rule apply?
Note that one class A share is convertible to 1500 class B shares. However, you cannot convert 1500 shares of class B to one share of class A. Also note that one class A share has the same voting rights as 10,000 class B shares.
Bob