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Options tax reporting.
- Thread starter RaidenDSI
- Start date
Unfortunately you have to go through all your monthly statements. Find all instances of where you sold any options, and then backtrack to where you initially purchased them to get a cost basis.
Wash sale rules still apply to options as well. As an example, this is what you would write on Schedule D for an option transaction:
10 Call ABCDE
or
5 Put ABCDE
Option symbols are usually 5 letters. Then just list the dates you bought/sold and the dollar amounts (trading fees included). Column (e) is just the amount you initially bought it at. If you bought/sold a position at different times, instead of entering a specific date you would write in "Various", and then just consolidate all the amounts.
Wash sale rules still apply to options as well. As an example, this is what you would write on Schedule D for an option transaction:
10 Call ABCDE
or
5 Put ABCDE
Option symbols are usually 5 letters. Then just list the dates you bought/sold and the dollar amounts (trading fees included). Column (e) is just the amount you initially bought it at. If you bought/sold a position at different times, instead of entering a specific date you would write in "Various", and then just consolidate all the amounts.
What about options that expire? I have some that expired.Quote from rimshaker:
Unfortunately you have to go through all your monthly statements. Find all instances of where you sold any options, and then backtrack to where you initially purchased them to get a cost basis.
Wash sale rules still apply to options as well. As an example, this is what you would write on Schedule D for an option transaction:
10 Call ABCDE
or
5 Put ABCDE
Option symbols are usually 5 letters. Then just list the dates you bought/sold and the dollar amounts (trading fees included). Column (e) is just the amount you initially bought it at. If you bought/sold a position at different times, instead of entering a specific date you would write in "Various", and then just consolidate all the amounts.
I am not too familiar with what a wash sale it. Iwill look it up. Thank you.
Quote from RaidenDSI:
What about options that expire? I have some that expired.
I am not too familiar with what a wash sale it. Iwill look it up. Thank you.
Just write in "Expired" in column (d) for sales price.
A wash sale is simply not being able to count a loss if you purchased the same stock within 30 days (before and after) of when you sold. So basically it's a 60-day window. So if you sold option ABCDE for a loss, but sometime within the 60-day window you bought option ABCXY (same company but different option) or bought the stock ABC itself, then that's considered a wash sale. So then you can't count the loss.
Would that go the same for gains also? What if you lost the first time, then rebought options or stock in the same company and lost again within 60 days? Would you only count the second loss or would you not be able to count anything at all?Quote from rimshaker:
Just write in "Expired" in column (d) for sales price.
A wash sale is simply not being able to count a loss if you purchased the same stock within 30 days (before and after) of when you sold. So basically it's a 60-day window. So if you sold option ABCDE for a loss, but sometime within the 60-day window you bought option ABCXY (same company but different option) or bought the stock ABC itself, then that's considered a wash sale. So then you can't count the loss.
Thanks.
Quote from RaidenDSI:
Would that go the same for gains also? What if you lost the first time, then rebought options or stock in the same company and lost again within 60 days? Would you only count the second loss or would you not be able to count anything at all?
Thanks.
A gain is a gain. There are no wash sale rules for gains, only for losses. (As a side note, every time I point this out, I get irritated as hell. Uncle sam is always sharing with you for the gains, but you are totally alone when it comes to losses. GRRRRRR)
You would then carry over the first loss amount to your COST BASIS of the second transaction. Like a rollover effect, so your cost basis is now reduced. It can get pretty hairy trying to keep track of dollar amounts when you got multiple carryovers.