what about taxes on options commissions?

[IndyJonerJr]

HI guys,

from what I understand, traditional stocks selling gives you a cost basis advantage when talking commissions when you say buy and sell stock..

what I want to know, is what happens to options sellers. Do we get any "special treatment" regarding commissions as some commissions run very high. If so can you tell me how this is calculated. in my mind I would think this only works if you do a round trip trade then, as my above example includes two trades... ?

any clarification as I trying to understand better net income after all expenses and such.

thanks

 

[Wilt]

Commissions are not a separate charge. They are factored into your P&L. You don't pay tax on commission separately, just your net P&L.

Wilt

 

[Robert Morse]

https://www.irs.gov/pub/irs-pdf/i8949.pdf

Gains and losses are based on net proceeds. Please consult a tax specialist.

The net proceeds equal the gross proceeds minus any selling expenses (such as broker’s fees, commissions, and state and local transfer taxes.)

 

[IndyJonerJr]

really appreciate the replies.. Robert, thanks for the Link and time to write that!