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Financial Planning / Tax Strategies
|Subject: Covered call and tax losses||Date: 10/19/2001 4:20 PM|
|Author: brewer12345||Number: 54703 of 124470|
I wrote covered calls on a stock that plunged in value and the shares were called today. I wrote calls twice netting about $1100. The sale of the stock will result in a taxable loss of approx $7500. The loss is short term. I won't get into the stock again for another 31 days if at all.
Just so I fully understand:
- Can I offset the gain on the options with the loss on the stock?
- Can I use the remaining loss on the stock to offset other dividends, interest and cap gains?
I'm under the impression that the answer to both is yes, but I figured I'd make sure.
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