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Strategies & Market Trends : Canadian Options

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To: Jan Johnstone who started this subject4/1/2001 4:33:38 PM
From: Benjamin Ng  Read Replies (3) of 1598
 
Q: How to report capital gains/losses on writing calls/puts in Y2000?

Can anyone tell me how you would report your gains/losses on writing calls/puts, especially with the 3-period tax year put forth by Paul Martin?

For example, let's say in September 2000, I write a December put option, and collect $1000 premium.
a) if the option expires worthless, do I claim the gain in period 2 (Feb 28-Oct 17), or in period 3 (Oct 18-Dec 31)?
b) if, in November, I buy back a December put option (same strike) at $800 to close the position, do I claim a $200 gain in period 2 or period 3?

Thanks,
Ben
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