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#4
01-06-2009, 01:48 AM
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 Re: Option Profits & Taxes "Rich Carreiro" <rlc-news[at]rlcarr.com> wrote in message news:m38wpptmtn.fsf[at]swing-shift.time-tripper.com... - quote - > "DB" <x[at]x.com> writes:
I guess 3K is better than nothing. Seems I should have liquidated on 12/31!> > OK, so let's say I pay taxes on the 7K for 2008. If, this year, I close > > out > > all the positions for 2K, do I get to deduct 5K from my 2009 W-2 earnings > > (if there's no short-term capitol gains)? DB > Not unless the $3000 capital loss limit rule is repealed. > Assuming no other transactions, you'd have a $5000 capital > loss. You take (no choice) $3000 of that against your other > income (including wages) and carry the remaining $2000 of > loss to 2010. > -- > Rich Carreiro rlc-news[at]rlcarr.com Thanks guys! DB -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#3
01-05-2009, 09:22 PM
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| Re: Option Profits & Taxes "DB" <x[at]x.com> writes: - quote - > OK, so let's say I pay taxes on the 7K for 2008. If, this year, I close out
Not unless the $3000 capital loss limit rule is repealed.> all the positions for 2K, do I get to deduct 5K from my 2009 W-2 earnings > (if there's no short-term capitol gains)? DB Assuming no other transactions, you'd have a $5000 capital loss. You take (no choice) $3000 of that against your other income (including wages) and carry the remaining $2000 of loss to 2010. -- Rich Carreiro rlc-news[at]rlcarr.com -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#2
01-05-2009, 09:20 PM
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| Re: Option Profits & Taxes DB <x[at]x.com> wrote: - quote - > "Steve Pope" <spope33[at]speedymail.org> wrote in message
If you have no capital gains in 2009, and 5K of capital loss,> > With rare exceptions, and assuming you do not have mark-to-market > > status as a trader which is unlikely, you pay taxes for 2008 only > > on positions that were closed out in 2008. So, probably on the 7K > > given what you've described. You will want to pay by Jan 15, 2009 > > in most cases. When you file you will have to identify each > > position and its gain/loss and report those. > OK, so let's say I pay taxes on the 7K for 2008. If, this > year, I close out all the positions for 2K, do I get to deduct > 5K from my 2009 W-2 earnings (if there's no short-term capitol > gains)? DB there's a 3K limit on the capital loss you can report in 2009. The other 2K of loss gets carried forward to 2010. Steve (not a tax professional) -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#1
01-05-2009, 07:56 PM
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| Re: Option Profits & Taxes "Steve Pope" <spope33[at]speedymail.org> wrote in message news:gjto4t$vb8$3[at]blue.rahul.net... - quote - > DB <x[at]x.com> wrote:
OK, so let's say I pay taxes on the 7K for 2008. If, this year, I close out> > Option trading in 2008. Probably about 50 trades with $10K. > > Made about $7K. Pulled principal (10K) in fall and had all > > earnings (7K) in other options on 12/31/08. Current value of > > option on 12/31/08 was only about 2K. What do I pay taxes on, > > 2K or 7K? Thanks. DB > With rare exceptions, and assuming you do not have mark-to-market > status as a trader which is unlikely, you pay taxes for 2008 only > on positions that were closed out in 2008. So, probably on the 7K > given what you've described. You will want to pay by Jan 15, 2009 > in most cases. When you file you will have to identify each > position and its gain/loss and report those. > (I am not aware of exceptions to this for micro-traders, but > perhaps others here have relevant experience.) > Steve > -- all the positions for 2K, do I get to deduct 5K from my 2009 W-2 earnings (if there's no short-term capitol gains)? DB -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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01-05-2009, 07:05 PM
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| Re: Option Profits & Taxes DB <x[at]x.com> wrote: - quote - > Option trading in 2008. Probably about 50 trades with $10K.
With rare exceptions, and assuming you do not have mark-to-market> Made about $7K. Pulled principal (10K) in fall and had all > earnings (7K) in other options on 12/31/08. Current value of > option on 12/31/08 was only about 2K. What do I pay taxes on, > 2K or 7K? Thanks. DB status as a trader which is unlikely, you pay taxes for 2008 only on positions that were closed out in 2008. So, probably on the 7K given what you've described. You will want to pay by Jan 15, 2009 in most cases. When you file you will have to identify each position and its gain/loss and report those. (I am not aware of exceptions to this for micro-traders, but perhaps others here have relevant experience.) Steve -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#-1
01-05-2009, 06:28 PM
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| Option Profits & Taxes Option trading in 2008. Probably about 50 trades with $10K. Made about $7K. Pulled principal (10K) in fall and had all earnings (7K) in other options on 12/31/08. Current value of option on 12/31/08 was only about 2K. What do I pay taxes on, 2K or 7K? Thanks. DB -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
| Tags |
| option, profits, taxes |
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