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#1
03-08-2005, 09:56 AM
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 Re: How do I handle stock options trades? "M. B." <REMOVETHESPAMmystic02[at]verizon.net> writes: - quote - > Can someone please tell me if trading stock options (buying
As long as you don't intentionally or unintentionally enter> or selling regular puts or calls) is handled the same exact > way as buying selling regular stock on the tax returns? into a tax straddle (not to be confused with the combination of options called a straddle), you are correct. If you enter into a tax straddle, various complicated loss deferment rules come into effect. - quote - > Here is an example. I buy $2,000 worth of calls for company
Yes.> XXX. I then sell those calls for $2,200. This means I must > pay on the $200 gain, right? - quote - > Or another example. I buy
Yes.> $1,000 worth of calls for company YYY, and they expire > worthless. Am I able to show a $1,000 loss for this > transaction? - quote - > Also, I am supposed to show all of these transactions
Yes.> together with stock ones on Schedule D. Correct? -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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03-08-2005, 09:37 AM
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| Re: How do I handle stock options trades? You are correct. They all go on Scheule D. ed << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
03-07-2005, 09:29 AM
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| How do I handle stock options trades? Can someone please tell me if trading stock options (buying or selling regular puts or calls) is handled the same exact way as buying selling regular stock on the tax returns? Here is an example. I buy $2,000 worth of calls for company XXX. I then sell those calls for $2,200. This means I must pay on the $200 gain, right? Or another example. I buy $1,000 worth of calls for company YYY, and they expire worthless. Am I able to show a $1,000 loss for this transaction? Also, I am supposed to show all of these transactions together with stock ones on Schedule D. Correct? Just to clarify, I only trade these options and NEVER actually exercise them. Thanks for your help! << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| handle, options, stock, trades |
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