Jamok,

I considered the wash sale thing, however there are two problems with that:

1. Is it substantially similar? Not sure it would pass that test.

2. Wash sale is one-sided to the IRS benefit. It's only there to prevent you booking a loss on a trade to reduce your tax hit. It doesn't prevent you being taxed on a profit.

As for it being a taxable event, that's just what the guy told me. I've no idea the ins and outs of such an event, or why it is. I have no reason to assume he's wrong, unless others hear differently from their brokers.