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Financial Planning / Tax Strategies


Subject:  1099/8949 vs Options vs Pub 550 Date:  3/7/2013  5:55 PM
Author:  b8meup Number:  117981 of 123001

The following is what Pub 550 says regarding puts or calls that are assigned on stocks:

"If a put you write is exercised and you buy the underlying stock, decrease your basis in the stock by the amount you received for the put. Your holding period for the stock begins on the date you buy it, not on the date you wrote the put.

If a call you write is exercised and you sell the underlying stock, increase your amount re-alized on the sale of the stock b