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


To: QuietWon who wrote (1550)12/8/1998 11:39:00 PM
From: Kaye Thomas  Read Replies (3) | Respond to of 5810
 
Generally speaking, you're correct: under U.S. income tax, you don't report income from selling an option until you close the transaction one way or another, even though you have cash in hand from sale of the option. Bear in mind that exercise and assignment can cause you to have a realization event earlier than you anticipate . . .

Kaye Thomas, author
Fairmark Press Tax Guide for Investors
fairmark.com