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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: ChanceIs who wrote (40994)	3/29/2005 2:22:06 PM
From: kodiak_bull	Respond to of 206325

See the Ernst & Young booklet I referenced in the next post (the pdf). Also, you may not have read this part of the summary I posted which summarized the IRS rules: "Buyers of Options There are three different tax treatments that could occur when you decide to buy a put or call option. The first is that you reverse your position (sell the option) before the exercise date. If this is the case, >>>>>>then you will have either a short-term (if held for under 1 year) or long-term (if held for more than 1 year) capital gain/loss<<<<< to report." Kb

To: ChanceIs who wrote (40994)	3/29/2005 8:37:30 PM
From: kollmhn	Respond to of 206325

I've been told by Morgan that writing puts against a long position is not considered a "constructive sale" if it is APPROXIAMTELY 15%, or more, out of the money. The reality is that unless you are audited and have all your trades in ONE brokerage account (where your intents might be easily visible), you need not worry. Having multiple brokerage accounts and 'disassociating' your trades means they are not likely to be picked up UNLESS you are being audited specifically for cap gains and losses. If you report ALL your 1099-S trades, even shorts you haven't covered by year end, you're 90% of the way home.