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Wow... that is alot of good info, but it is a better example of how Congress and the IRS have completely lost sight of the goal of the individual income tax (the goal is still to raise revenue, right?)

I've done some covered call writing at times, and I report them just like a short sale of stock: I receive a premium of $X/share, and regardless of whether or not the call is exercised, the value at expiration is $0 (the underlying may or may not be sold at the strike price). So I always have a short-term gain on the premium, and either a short-term gain or loss on the underlying, depending on where the strike was in relation to my basis (if the stock is sold at all). From what I can tell, I'm safe as far as the IRS is concerned because everything is short-term.

I don't think I could keep track of all that other info, and nothing gets me going more than the IRS making complicated rules but leaving out key points. They can't figure it all out but expect each one of us to figure it out, and for all of us to do it the same way, and for us to be happy to pay fines/fees/penalties when they don't like what we've figured out.
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