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To: ggamer who wrote (108399)	11/8/2001 1:21:45 PM
From: Jordan Levitt	Read Replies (1) \| Respond to of 152472

<<A friend of a friend said that options are not taxable because they are not reported. What is the feeling here? Is there a way for the gov to research this?>> Puhleeeeeeeeeeez ! I have a bridge for sale, er, ummm. swampland,......<GGGGGG>

To: ggamer who wrote (108399)	11/8/2001 1:24:26 PM
From: golfinvestor	Read Replies (1) \| Respond to of 152472

<A friend of a friend said that options are not taxable because they are not reported. What is the feeling here?> Maybe, you should check if your friend of a friend is in prison for tax evasion...

To: ggamer who wrote (108399)	11/8/2001 1:26:40 PM
From: marginmike	Read Replies (1) \| Respond to of 152472

yes. You can try but its pretty stupid and if your caught they will send you to TIME OUT-g-Business capital gains is not reported either, doewsnt mean you can just not report it.

To: ggamer who wrote (108399)	11/8/2001 1:29:43 PM
From: jazzcat2000	Respond to of 152472

It's true that they aren't reported. I think it's because options were classified differently a long time. It's like any other chance you take. Are you willing to risk an audit? You would certainly have an option paper trail with your broker or online account which would come under scrutiny with an audit.

To: ggamer who wrote (108399)	11/8/2001 1:49:40 PM
From: David E. Taylor	Respond to of 152472

GG: On the 1099-B I get from my broker, options trades are listed as "not reported to the IRS", and the total $$ amount of options sales is not included in the Box 2 "Gross Proceeds" amount, which is limited to proceeds from stock sales. So theoretically, the IRS has no way of knowing just from the summary 1099 filed by your broker whether you had options trades or not. But if you didn't report options trading profits (I assume you're talking about profits and not losses) and the IRS were to audit your return and ask for detailed brokerage statements, which would show your options trading, you'd be in the proverbial slammer. Comes under the category of "failing to report income", and not worth the risk IMO. Margin interest isn't on the 1099 either, but I guess you deduct it if you had any. David T. P.S. Looks like a few people have considered the same Q....