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

To: david siple who wrote (793)	3/27/1998 12:12:00 PM
From: sailor	Respond to of 5810

All Option sales have to be reported on the Sch D. Even thought they are not reported to the IRS, you must report them.

To: david siple who wrote (793)	3/27/1998 10:12:00 PM
From: George Sepetjian	Respond to of 5810

Just input the facts on Sch-D Input each option gain separately showing your profit & input each option loss as a negative. Add the totals including the sales of regular common stock sales to show your NET profit/loss depending on how skillful you were in 1997. No different than if you were only selling common stock for a profit or loss. You can deduct the option losses from your gains dollar for dollar. I know what you mean when you say the 1099B won't jive with what you are reporting & I'm stumped as to why this income is not reported to the IRS but it definitely would be a record-keeping nightmare for the IRS to keep track of all these CBOE trades & maybe that is why they are just using the honesty of the taxpayer to do the right thing. Bottom Line-Report your income honestly & don't worry about it. Then your records will be your proof if any delinquent notices are generated.

To: david siple who wrote (793)	3/30/1998 12:54:00 PM
From: John F. Dowd	Respond to of 5810

Brokerage houses do not report Option xactions on 1099b. You are on your honor regarding options.