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To: nimingdn who wrote (56061)	5/25/1998 11:20:00 AM
From: Elmer	Respond to of 186894

<But legally speaking, you have to report the option income whether it is reported to IRS via 1099 or not, isn't it? am I missing something here? > Only a subtle hint EP

To: nimingdn who wrote (56061)	5/25/1998 4:34:00 PM
From: Erwin	Respond to of 186894

Ming, Yes, of course, you have to report the income but I am not sure how it is treated. I would think it should be a reduction to the basis you have in the stock. If that is so you would not report it until the sale of the stock; however, if that is not the case you may have to report it when received. Maybe someone else can shed a better light on how covered call premiums received are treated at tax time. My prior message was in no way intended to suggest avoiding paying taxes. I only stated you will not get a 1099 at the end of the year, or at least, several people I know and I never did. Erwin