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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: rel4490 who wrote (6248)9/13/1999 11:44:00 AM
From: edamo  Read Replies (1) | Respond to of 54805
 
re: "tax consequences of option trades"

you are getting close, but are leaving out some very important points.

options covered under irc sec. 1234(b)(1)

options can be traded as the common, no underlying ever changes hands. in this case the option trade has the same tax consequence based on time held.

e.g...sell to open qcom 02150 put today, buy to close 02150 put in jan 02=long term gain or loss.

no difference between options and common stock, only "always" short term when put or call lapses(expires)

just trying to clarify your position that it is "always" considered "short"

good luck..ed a.



To: rel4490 who wrote (6248)9/13/1999 12:09:00 PM
From: ratan lal  Read Replies (1) | Respond to of 54805
 
Do they list your options trading on the 1099 (i.e reported to the IRS)??

none of my 3 brokers do. I am not sure if these trades are reportable or not and neither does my accountant. But I report them anyways. So far the IRS has not come back and asked for the discrepancy between the 1099 and my figures, maybe because mine are higher than the brokers.


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