SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Income Taxes and Record Keeping ( tax )
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Colin Cody who wrote (485)1/21/1998 8:59:00 PM
From: VincentTH  Read Replies (1) of 5810
 
How does option premium affect AGI.

Colin,

I have another question: In my effort to reduce my AGI for '98 in order to qualify for a Roth conversion, I am thinking of using this strategy:

I bought, say 1000 shares of SUNW for $35, and today sell the LEAP Jan99 $45 for $10, for the amount of $10,000. Will the $10K count towards my '98 income, or will it count at expiration in Jan '99?

McMillan seems to agree with me, while Tesser is vague about this.

If I make most of my trades that way, would I be able to defer most of my cap gain to 1999 while locking the profit, assuming of course that I don't get called out.

Thanks In Advance,
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News