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To: miraje who wrote (173187)2/26/2003 1:55:28 PM
From: Noel  Read Replies (3) | Respond to of 186894
 
JB, Taxation of CCs

My understanding was that all options are treated as short-term gains.

Have you found an IRS publication for options?


You can always roll them (CC's) to a higher strike at a later date. That may also generate a capital loss (for tax purposes) while protecting and even enhancing unrealized future gains.


That is exactly what I did a couple of years ago and Intel kept on climbing at which point I gave in.



To: miraje who wrote (173187)2/26/2003 2:42:24 PM
From: Robert Douglas  Read Replies (1) | Respond to of 186894
 
As far as I know, profits from CC writing are taxed as capital gains, not as income.

Aren't short term capital gains taxed the same as ordinary income?