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Strategies & Market Trends : Dividend investing for retirement
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Kip S
To: robert b furman who wrote (30401)1/16/2019 10:50:43 AM
From: TheNoBoB1 Recommendation   of 34328
 
Re: Cap gains on short options

A taxation rate associated with investments held beyond twelve months, as in capital gains treatment.
Nothing in the tax code is that simple. Here's the relevant section of Publication 550, "Investment Income and Expenses" covering Options --> Option not exercised.
"If you are not in the business of writing options and an option you write on stocks, securities, commodities, or commodity futures is not exercised (or repurchased), the amount you receive is a short-term capital gain.'


Note the lack of mention of holding period. I don't know about "high end software and accounting programs", but I know from experience that TurboTax handles this situation in accordance with Pub. 550, as STCG.
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