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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (6439)	4/13/2000 8:27:00 PM
From: RR	Respond to of 8096

Hi Unc: On 1099 options trades, U R correct. Rick <eom>

To: Uncle Frank who wrote (6439)	4/13/2000 8:40:00 PM
From: Jill	Respond to of 8096

I know. I saw that on my Fido statements. But the idea of getting audited for actual fraud i.e. not reporting income is too scary. Even if the chance is rather small. But you can see why they don't report. For instance, take a put sale. You get the income now, but suppose it was an 02 leap you sold. You don't "close" the deal until you either are put the stock or the premium expires worthless. So you can't report it until it is closed. Or say you buy a call. If you sell it, you report income, exercise it and you don't. It's all so fluid, it has to be an honor system. Options are just too complex. And forget spreads and straddles... Even so the rules are so internecine people are constantly asking questions and I believe accountants sometimes have different answers. The accountant I chose uses SI and works with traders (Colin Cody--he's on the tax thread). I think he did a very good job. He registered me for trader status next year even tho if this market continues I sure won't be trading much and won't use it. But in such case I believe you can go mark to market and eliminate wash sales. It makes my head go fuzzy so I try to leave that stuff to somebody else.