Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I spent $1000 for options on CPQ in tax year 1998, and when the option came due, it was "in the money", so I purchased the underlying stock (again in 1998). I still hold the stock now. Is there any way I can take credit for the $1000 spent to purchase the option in 1998? I am assuming that the answer is no, and that when I eventually sell the underlying stock, that the my initial purchase price of the stock can reflect the $1000 spent for the purchase of the option for capital gains determination. Is that the case, or can I somehow count the option as a short-term capital loss (after all I did not sell the option back at a profit). Wishful thinking, I presume....
Any help would be appreciated.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.