The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  LEAPS tax scenario Date:  1/19/2000  11:57 PM
Author:  mike4047 Number:  25537 of 124765

Hi, my question concerns LEAPS.

How does one account (tax-wise) for LEAPS sales? Hypothetically, say on Jan
3, 2000, Juan buys QCOM Jan 2002 LEAPS X=100, at a premium of 20, then
sells them 18 months later with a premium of 40? Does he pay taxes on a long
term gain or does he have to follow some 60/40 rule that i've heard about?
Thanks in advance!
Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us