tax question

S

Sanity

does anyone know the correct tax treatment for options that expire worthless? is it the same as a buy and sell loss? also, how can this be noted in the return, since there is no sale price to calculate a p/l from. thanks a lot.
 
Sanity,

Assuming these were options you purchased you can treat these as Capital Losses. Most tax software will code this so the netting is correct. I am pretty sure that the losses are treated as short term capital losses, but I loaned out my tax guide so I can't check the exact treatment.

The instructions for Schedule D should give you an idea how to present them on your return if you are doing your return manually.
 
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