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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: Hectorite who wrote (1047)	12/8/1999 12:04:00 AM
From: Jon Tara	Respond to of 2317

Hectorite, use Turbo-Tax. You can enter unlimited transactions. You'd have to add them up on a calculator anyway to do it the way your propose. Why not let TT do it for you?

To: Hectorite who wrote (1047)	12/8/1999 9:45:00 PM
From: KFE	Read Replies (1) \| Respond to of 2317

Hectorite, Clearly the two transactions involved with opening a spread can be mashed into one "cost." The two sides of a spread cannot be combined into one cost. The long side and the short side have to be listed as separate transactions. The short side on equity options will always be short term regardless of holding period and the long side will be short or long term based on holding period. Index options are section 1256 contracts and will always be 60% long term and 40% short term regardless of holding period or whether held short or long. You use Form 6781 to report index option transactions which are then transferred to Schedule D. Regards, Ken