Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: RoseCampion who wrote (49239)	11/11/1999 7:23:00 PM
From: Mark Peterson CPA	Respond to of 152472

My 2 cents here, FWIW. As long as you don't elect to be taxed as a "trader", then nothing has to be marked to the market in your personal portfolio. The gains in your spread aren't recognized for tax purposes until they're realized (i.e., you close the spread, buy a leg back in, etc.) The IRS is still formulating policy on how the wash sales rule applies to options. But if before December 31, you buy back an "in the money" option (which you previously sold) that represents one leg of the spread, creating a tax loss, and later sell an "out of the money" option in a further month, under the current regs, it's probably not a wash sale and the "loss" will be allowed for tax purposes. Sorry, if I butted in... Mark