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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Spots who wrote (2364)	11/6/1999 9:38:00 AM
From: Wowzer	Respond to of 5810

Spots..Rose, Thanks for your responses. Rory

To: Spots who wrote (2364)	11/8/1999 11:40:00 AM
From: Kaye Thomas	Read Replies (1) \| Respond to of 5810

Spots, you came closest to hitting the main points on these questions about tax rules for options. The rules are very complicated, and I haven't found time to write them up for my web site, not do I have time to try to lay them out here. I will mention briefly, though, that if you sell covered calls, it matters whether they are qualified covered calls (a complicated definition) if you want to avoid some aspects of the straddle rules. Where can you go for information on this subject? In order from most friendly to most detailed: IRS Publication 550, available free from their web site. Tax Facts 2, a book that's reviewed on my web site. Or you can stoke up on caffeine and read the material you'll find here: cboe.com I'd love to be more helpful but I'm busy getting my own book out. (Plug alert!) It's called Stock and Options: Get the Most from Your Equity Compensation, and I hope to have it available by the end of the year. As you can see from the title, it deals with options you get from your employer, not options you buy through your broker. Kaye Thomas, author Fairmark Press Tax Guide for Investors fairmark.com PS: There's extensive wash sale guidance on my web site.