Tax Treatment For Trading Options (Recording)
Mar 07, 2017 at 4:30 pm EST
Join trader tax expert Robert A. Green, CPA as he explains:
- How options traders may qualify for trader tax status benefits, and the challenges they face from the IRS.
- Tax treatment for options is diverse, including simple and complex trades on securities vs. Section 1256 contracts.
- Outright option trades: trade option (closing transaction), the option expires (lapses), and exercise the option.
- Complex option trades: straddle loss deferral rules.
- Brokers don’t report wash sale losses between different option exercise dates, but taxpayers should.
- A timely Section 475 election exempts options traders from wash sale losses, straddle loss deferral rules, and capital loss limitations.
Dear Adam, Robert & Darren, I would like to draw attention to the fine work performed by Rachel Ellis. Not only is her tax knowledge proficient but also her talent for managing clients is exceptional. As a former Wall St. analyst charged with responding to many different clients' needs - typically always simultaneously -- I know how demanding that aspect can be. Rachel is always patient, good humored and responsive. I hope that she -- and all of you -- can find some time to relax after the tax season. Best regards,