Question: A client would like to sell short ABC common stock but is unfamiliar with the tax treatment of short sales. You should inform them that

A client would like to sell short ABC common stock but is unfamiliar with the tax treatment of short sales. You should inform them that

(A) all gains are taxed as ordinary income

(B) all gains or losses are taxed as passive income or losses

(C) all gains or losses are considered short term

(D) all gains or losses are considered long term

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