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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )

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To: VincentTH who wrote (496)1/22/1998 7:37:00 PM
From: Colin Cody  Read Replies (2) of 5810
 
Vincent, I have the current version of Tesser's book. Please refer to the discussion and page number in it you are referring to.
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You would generally recognize income the sooner of the expiration of the option, at the exercise on the option, or under the "constructive sales rule" the year in which you enter into a position that has substantially the effect of limiting your downside exposure of the underlying appreciated security held. i.e. possibly deep-in-the-monry calls.
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Colin
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