- long-term held stock with high cap gains
- put option on said stock that will be short-term at expiry with high cap gains
If I sell the stock and put option, stock is long-term and put is short-term. (also pub 550)
However, if I donate the stock and put option together and my donor advised fund exercises the stock with the put, am I allowed to treat the deduction as though the put was long-term? (i.e. deduct the put strike price on schedule A) -- or can I only deduct FMV of stock and the basis of the put (treating stock as long-term and put as short term)?