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#1
03-27-2006, 07:00 PM
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 Re: section 1256 - dealer equity option sethb[at]panix.com (Seth Breidbart) writes: - quote - > Section 1256 causes dealers to mark to market at the end of
Not quite. There are some contracts (like certain index> the tax year; it doesn't apply to ordinary people. options) known as (surprise!) "section 1256 contracts" that ordinary people *do* have to mark to market each year. -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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03-26-2006, 02:34 PM
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| Re: section 1256 - dealer equity option mneuhaber22[at]berlin.com <mneuhaber22[at]berlin.com> wrote: - quote - > do dealer equity options as defined here
A small fry trader is not a dealer, as that publication says:> http://www.irs.gov/publications/p550/ch04.html#d0e9074 include options > on common stocks? For example if a small fry trader bought > and sold some Intel options are the gains/losses reportable > in section 1256 of his return? An "options dealer" is any person registered with an appropriate national securities exchange as a market maker or specialist in listed options. Section 1256 causes dealers to mark to market at the end of the tax year; it doesn't apply to ordinary people. Seth << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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#-1
03-25-2006, 08:03 AM
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| section 1256 - dealer equity option Hey dudes do dealer equity options as defined here http://www.irs.gov/publications/p550/ch04.html#d0e9074 include options on common stocks? For example if a small fry trader bought and sold some Intel options are the gains/losses reportable in section 1256 of his return? Is "dealer equity option" something IRS recently added that I've missed? It used to be that a few years back even QQQQ and SPY options were thought by some to be ineligible for sec 1256 treatment. Help! << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
| Tags |
| 1256, dealer, equity, option, section |
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