The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Tax ?...rolling options||Date: 3/20/2012 1:56 PM|
|Author: irasmilo||Number: 115574 of 121146|
1. Does rolling written puts/calls out to a new month and/or different strike at a loss to that original option carry a wash-sale to the new option? (Of course same underlyer)
I think I am hearing here that it does not...only if the CUSIP is the same (and that won't happen once you change month or strike). I have been counting roll outs as wash sales when rolling an option that was currently losing.
What I think you can conclude from the exchange of ideas between Peter and me is that brokers only have to report wash sales when the CUSIP number is identical, but that is not the only determinant of a wash sale.
I believe that certainly a change in expiration date would constitute a new security and would be willing to accept that a change in strike price would as well. Peter was less liberal in his interpretation of what constitutes a different security. He felt that two options that would experience the same price movement because the strike price(s) were so far away from the current price might be deemed to be substantially identical.
2. This year my broker sent me no option activity on my 1099...though I made a load of option trades. Is that OK? Am I just on my honor reporting my option trades this time?
That's what the broker is supposed to do. Options trades are not reportable on Form 1099-B. The effect of option execution on the underlying security's trades is reportable by the appropriate adjustment to the cost basis or sales proceeds.
I'm hearing that some brokers don't send option transactions(nor are actually required to) . This would be a first for me. True?
As stated above, yes. Brokers are not required to report option transactions to you at year end. You are still required to report all income on your tax return.
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