Do you pay tax on options?

[lasner]

Hey guys I have a question for you. I noticed that there is no 1099 to be filled out on options trading.

The I.R.S. has no recorded of your profits. I called my broker and talked to him and he told me that everybody in here says the same thing.

I called the I.R.S. and asked them what the deal was and they basically told me it's a loophole. I said do I have to pay the tax and all they kept saying is it's a loophole. That was from the I.R.S themselves.

So I was wondering should I pay the tax on the option profit?

 

[whitster]

yes

it's a capital gain (or income if u have filed professional trader status). the IRS has just not caught up yet to options

to be safe, i'd report it as a capital gain (or loss )

 

[lasner]

I haven't filed professional trader status. If you don't have a 1099 and there's no record of it to the I.R.S why pay it.

 

[joeyata1]

lol. were did you learn if you're a professional trader it's income? that bs i'm a mtm trader and its a capital gain. NOT PAYING TAXES ON OPTION INCOME IS TAX EVASION. JUST BECAUSE IT'S NOT REPORTED TO THE IRS MEANS NOTHING YOU MUST STILL REPORT IT. MANY BROKERAGE HOUSES DO YOU SEND YOU THE TRADES AT YEAR END BUT THEY DON'T REPORT TO THE IRS

 

[Kastro_316]

Capital gain.....!

You must report it!

It would be income if it was your main source of rev. i think....

-Kastro

 

[Free Thinker]

Quote from lasner:

I haven't filed professional trader status. If you don't have a 1099 and there's no record of it to the I.R.S why pay it.

to stay out of jail?

 

[lasner]

I called the I.R.S. and personally asked myself. They told me it's a loophole.

That's coming from the I.R.S. themselves. Now they didn't flat out say no don't pay the tax, but that's kinda what I was picking up.

 

[Free Thinker]

Quote from lasner:

I called the I.R.S. and personally asked myself. They told me it's a loophole.

That's coming from the I.R.S. themselves. Now they didn't flat out say no don't pay the tax, but that's kinda what I was picking up.

hey,give it a try. let us know how it works out.

 

[Kastro_316]

Trust me, pay it!!!!

It can turn into a BIG MESSSSS if you don't!

 

[lasner]

I'm not saying I'm going to do it, but I don't get it. You know how many millions if not billions of dollars are made on options trading each year. It's impossible for the I.R.S. to keep track of everyone, especially if they have no record of it.

I just don't get it. I think it's pretty funny.