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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 122904|
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 by the amount you received for the call when figuring your gain or loss. The gain or loss is long term or short term depending on your holding period of the stock."
However, on my 1099 I see that my broker shows a call that was assigned as a separate item identified as Box C (not reported to you on 1099B). I found a note that said brokers were not to report Options until 2014.
I maintain a spreadsheet that reduces my basis if a put is assigned and increases the sale price if a call is assigned. I have been doing this based on my understanding of Pub 550 but now my spreadsheet does not match what my broker is providing. Am I wrong or should I contact my broker?
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