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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: Travis_Bickle who wrote (98421)	2/6/2007 10:01:11 AM
From: manalagi	Read Replies (1) \| Respond to of 362655

Currently the brokers are not reporting gains from option trading. It is up to the taxpayer to report those gains. I report everything from my option transactions since I want to sleep well at night. Reporting option activities by brokers can be complicated. For example, if you sell put option and get assigned, and then you sell call option against your share, then you have to report the cost basis minus the put option you sold, and then adjust the sale price by adding the call proceed. The total gross sales is more than the one reported by the 1099-B. How about short sale that is still open at the end of the year? The 1099-B shows a sale, but you have not covered, so that transaction has not been completed and you don't report. This cause discrepancy between your Schedule D and 1099-B.