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#1
03-10-2009, 02:05 AM
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 Re: Listing Puts and Calls on Schedule D On Mar 9, 6:37*pm, "removeps-gro...[at]yahoo.com" <removeps- gro...[at]yahoo.com> wrote: - quote - > On Mar 9, 3:02 pm, "John Keiser" <john.keis...[at]hawaiiantel.net> wrote:
Except for the description consider that each sale and expire the> > I sold several puts and calls during the year. *I've read Pub 550 and > > understand how to do the math. > > My question concerns the best way to enter this information into the short > > term gain/loss area of Sched. D which is set up more for stock sales. > > Since I have no 1099 and I did not "acquire" any stock but "sold" the > > put/call, I propose to list the item as "Sold 10 Calls XXX Dec 120"; *Date > > Acquired "EXPIRED": Date Sold "Date of Transaction", leave purchase price > > and basis "BLANK" and enter as gain/loss "[net proceeds]". > > Is there a better way to keep this return under the radar and out of the > > audit bin? > > Thanks for any comments. > For the description I put "2 ZQNOX.X" for 2 contracts of ZQNOX.X. *The > date acquired is when I bought the option, and cost basis is how much > I paid for it. *The date sold is when I sold the option. *If I didn't > sell the option and it expired worthless, I put the date sold as the > expiration date and the proceeds as zero. *If I didn't sell the option > and was in the money at expiration, the option would probably have > been automatically exercised by the broker, and then it gets a little > more complicated and depends on whether you have a call or put. *Never > been questioned or audited. same as if they were a stock you sold short and then bought back. on the xpiration date. Since you sold the options the purchase/expire date will be later than the sold date on the Schedule D. ed -- << ------------------------------------------------------- > << 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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03-09-2009, 10:37 PM
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| Re: Listing Puts and Calls on Schedule D On Mar 9, 3:02 pm, "John Keiser" <john.keis...[at]hawaiiantel.net> wrote: - quote - > I sold several puts and calls during the year. I've read Pub 550 and
For the description I put "2 ZQNOX.X" for 2 contracts of ZQNOX.X. The> understand how to do the math. > My question concerns the best way to enter this information into the short > term gain/loss area of Sched. D which is set up more for stock sales. > Since I have no 1099 and I did not "acquire" any stock but "sold" the > put/call, I propose to list the item as "Sold 10 Calls XXX Dec 120"; Date > Acquired "EXPIRED": Date Sold "Date of Transaction", leave purchase price > and basis "BLANK" and enter as gain/loss "[net proceeds]". > Is there a better way to keep this return under the radar and out of the > audit bin? > Thanks for any comments. date acquired is when I bought the option, and cost basis is how much I paid for it. The date sold is when I sold the option. If I didn't sell the option and it expired worthless, I put the date sold as the expiration date and the proceeds as zero. If I didn't sell the option and was in the money at expiration, the option would probably have been automatically exercised by the broker, and then it gets a little more complicated and depends on whether you have a call or put. Never been questioned or audited. -- << ------------------------------------------------------- > << 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
03-09-2009, 09:02 PM
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| Listing Puts and Calls on Schedule D I sold several puts and calls during the year. I've read Pub 550 and understand how to do the math. My question concerns the best way to enter this information into the short term gain/loss area of Sched. D which is set up more for stock sales. Since I have no 1099 and I did not "acquire" any stock but "sold" the put/call, I propose to list the item as "Sold 10 Calls XXX Dec 120"; Date Acquired "EXPIRED": Date Sold "Date of Transaction", leave purchase price and basis "BLANK" and enter as gain/loss "[net proceeds]". Is there a better way to keep this return under the radar and out of the audit bin? Thanks for any comments. Remove -NOSPAM- to contact me. -- << ------------------------------------------------------- > << 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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