a. At the time the short sale is mae, the taxpayer does not deliver the purchaser the shares sold short.

b. At the time the short sale is made, the taxpayer delivers to the purchaser the shares sold short.

c. At the time the short sale is made, the taxpayer may already own the shares sold short.

d. At the time the short sale is made, the taxpayer always already owns the shares sold short.

e. None of the above.

Thank you for your help!

Is there any limits on the number of short stock sales you can have in a year or any given period? This year I have been doing a number of short sales. I am afraid next year when I will be reporting taxes for the capital gains it would be a problem? Please advice. I want to know if it is problem from legal perspective or from tax perspective.