Why aren't options reported on 1099

matador04 · Sep 17, 2009

The trades only come in as supplemental...?

dagnyt · Sep 17, 2009

Quote from matador04:

The trades only come in as supplemental...?

1099 is not appropriate for capital gains and losses.

Options are reported on Schedule D.

Mark

RainmanRam · Sep 18, 2009

I think the real question is why they are not reported by brokerages on the 1099-B along with security trades.

I've wondered this myself.

- Ray

r-in · Sep 18, 2009

Dirty little secret, Congress makes sure option trades are only self reported for their own benefit. They use options to make a fortune and fund their reelection campaigns. They talk to their CEO buddies or others and tell them about the rewards coming their way if they give them some financial, or blockbuster news tips before release and they buy options ahead of the release. Then they clean house after release, write a few tax laws to benefit the company or individual, and all are happy. They don't report them and make sure the brokerage buries any identifying information.

How do you like that one for the conspiracy nuts!!!?

matador04 · Sep 18, 2009

I was referring to the segregation of securities trades and options trade on the statement the brokerage sends. It specifically states "supplemental tax information: non reportable"

spindr0 · Sep 18, 2009

Quote from r-in:

They don't report them and make sure the brokerage buries any identifying information.

How do you like that one for the conspiracy nuts!!!?

Don't drink the Kool Aid (aka Flavor Aid)

noob_trad3r · Sep 18, 2009

The brokerage sends every trade to the IRS???

So the IRS knows what you buy and sold etc..

matador04 · Sep 18, 2009

Quote from noob_trad3r:

The brokerage sends every trade to the IRS???

So the IRS knows what you buy and sold etc..

Not the specific trades, just dividends, interest, original issue discount, miscellaneous income, etc

TraderZones · Sep 18, 2009

Quote from RainmanRam:

I think the real question is why they are not reported by brokerages on the 1099-B along with security trades.

I've wondered this myself.

- Ray

never traded options, but where is the evidence of this? No brokers report options, but they report stocks, futures, bonds, forex???

Rodney King · Sep 18, 2009

Quote from r-in:

the brokerage buries any identifying information.

Interesting. But I'd be more convinced of your credibility if you added even more smiley faces to your posts.