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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Michael Allard who wrote (24)4/19/2001 9:21:14 AM
From: FaultLine  Read Replies (1) | Respond to of 5205
 
IRS Capital Gains and Losses

Here is a reference to the plain-English IRS document, Capital Gains and Losses.
irs.gov

Take a look about half-way down at the "Calls and Puts" section. There are several examples accompanied by a nice Summary Table.

irs.gov

The Motley Fool's book, Investment Tax Guide 2000 (2001?), also has a number of interesting examples and discussions.

--fl



To: Michael Allard who wrote (24)4/19/2001 10:39:05 AM
From: Dr. Id  Respond to of 5205
 
Anyone know the tax implications of holding covered calls through a calendar year transition?

There is no tax implication until the year that the call either expires or is called. In other words, if you sell a Jan 02 call in Dec 01, you collect the money in 01 but don't pay taxes on it until 02.

dDI

p.s. Or, like JGoren said. (doh, he beat me to it!):-)


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