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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Peckton who wrote (339)	12/28/1997 7:57:00 PM
From: Peter Singleton	Respond to of 5810

If I sell a stock for a gain, and at the same time buy a call option (to partially cover myself if the stock goes up), does the fact I buy the call option affect the way I report the gain? sorry if this has been covered on the thread ... I don't have time to read them all ... Peter

To: Greg Peckton who wrote (339)	12/28/1997 9:32:00 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 5810

Man.... you are going to have a major head ache... bottom line... you can only apply $3000 of your loss in the current year....and carry the rest forward, $3000 per year, for the next more or less 7 years..... no idea about california.... no doubt an additional complication to your life.. the trading slips are useful for sorting out your trades.....much harder to do it from statements....but statements should be enough proof for IRS.... as long as your tax return balances with what is reported...to them by your brokers in Jan..... Joel

To: Greg Peckton who wrote (339)	12/28/1997 11:34:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

You should contact your Brokerages now and request COPIES of EVERY MONTHLY STATEMENT. You may be charged a fee for this extra service. . You then generally must report each individual "sell" and the related "buy" on Schedule D. You then need to reconcile to your Brokers' 1099 statements for the STOCK sales. The OPTION transactions will not be reported to you again by brokers on form 1099. . If certain options EXPIRED you need to know the DATE of expiration to report it as a "sale" for "zero" on that date. . CA Resident follows Federal for those months you WERE a CA resident. You'll need to do a PART-YEAR CA return and follow the CA instructions for reporting purposes. Call CA 800-338-0505 or 800-852-5711 in a couple weeks to get a forms package. . Colin