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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )
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From: Elroy5/19/2022 9:01:57 PM
   of 5810
 
Here's an interesting question.

I am short covered calls in my Roth account. The trade has gone against me, so the position has a negative value.

I am under withdrawal age, so if I withdraw funds now (early) from my Roth I'm supposed to pay 10% tax on the withdrawal.

So.........

If I withdraw the short call position, what do you think I would owe in tax? The position has a negative total value (the underlying has gone up quite a lot since I sold the calls).

And,,,,,if I put them position in a regular brokerage account, and then buy back the calls at a loss, is that loss tax deductible in the current tax year?

Anybody have any idea?
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