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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: Thean who wrote (1910)	8/18/1998 10:01:00 PM
From: drsvelte	Read Replies (1) \| Respond to of 14427

Thean: I don't have the answers to any of your questions, but there is a tax related thread on SI that deals with these sorts of issues. Try this for starters: Subject 17266

To: Thean who wrote (1910)	8/18/1998 10:52:00 PM
From: Alski	Read Replies (1) \| Respond to of 14427

Thean, From the 1997 1040 Forms and Instructions: Gain or Loss From Options Report on Schedule D gain or loss from the closing or expiration of an option that is not a section 1256 contract, but that is a capital asset in your hands. If a purchased option expired, enter the expiration date in column (c), and write "EXPIRED" in column (d). If an option that was granted (written) expired, enter the expiration date in column (b), and write "EXPIRED" in column (e). Fill in the other columns as appropriate. See Pub. 550 for more details. For tax purposes a spread or other combination position would be treated as two separate options. I think there may be some caveats in some "substantially identical" property clauses and the new "constructive sales" clauses if you're trading or holding both the common and options but I've not got my head around those yet. Pub. 550 is definitely important. It's on line at the IRS site, along with a bunch of other good info. irs.ustreas.gov Alski

To: Thean who wrote (1910)	8/19/1998 8:02:00 AM
From: Alias Shrugged	Respond to of 14427

Thean I too use an Excel spreadsheet to record Sch D information. But, I don't worry about the exact formatting. I copy the total figures onto the Sch D, but don't enter any individual trade information. I simply write "see attached" on one of the lines and attach a copy of the spreadsheet. Take Care Mike

To: Thean who wrote (1910)	8/19/1998 8:41:00 AM
From: SJS	Respond to of 14427

Thean, I used to do that, then graduated. I may very very humbly suggest a program that will do it all for you: Quicken and turbo Tax. Small investments for traders. 1) If the option expires worthless, use 0. 2) If the call never gets called, you sold it for X and bought it for 0. IE, you take the all the money you got for it as ST cap gain. 3) It's always 2 separate puts and calls. It doesn't matter how YOU theortically consider them bound, to the IRS its two items.