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    I had thought I read that Option trading will now be reported on a 1099B. Has anyone else read anything about this?
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

    #2
    Are We There Yet?

    Bob, I thought this was always the case. I have survived some of these option transactions with my clientele, seems like it is always either very good or very bad.

    But in all cases I've encountered, there was a 1099-B. Of course, they've all been with major brokers - Merrill Lynch, Smith Barney, etc. It's possible these brokerage houses have been voluntarily reporting if there has been no requirement to do so.

    EXERCISE of options creates a reporting requirement on an employee's W-2, and carries no 1099-B requirement -- I'm assuming you're talking about trading and not exercising.

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      #3
      My experience

      With Option trading has been reporting by the brokerage on 1099B when the option is sold or covered. No reporting when the option expires worthless. This always seemed like a good place to someone to both lose a deduction and to overstate their losses.
      In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
      Alexis de Tocqueville

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        #4
        One of the proposals is to require brokers to report cost basis information on the 1099-B. I don't think that made it into law yet, but they are thinking of it.

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          #5
          Originally posted by Snaggletoof
          Bob, I thought this was always the case. I have survived some of these option transactions with my clientele, seems like it is always either very good or very bad.

          But in all cases I've encountered, there was a 1099-B. Of course, they've all been with major brokers - Merrill Lynch, Smith Barney, etc. It's possible these brokerage houses have been voluntarily reporting if there has been no requirement to do so.

          EXERCISE of options creates a reporting requirement on an employee's W-2, and carries no 1099-B requirement -- I'm assuming you're talking about trading and not exercising.
          If I am not mistaken individual investors can also have stock options, not just employees. I have also seen them reported on 1099b's as well.

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            #6
            According to 2006 Form 1099B instructions

            According to the 2006 Form 1099B instructions:

            Exceptions. Brokers are not required to file, but may file, Form 1099-B for:

            13. Grants or purchases of options, exercises of call options, or entering into contracts that require delivery of personal property or an interest therein.

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              #7
              Thanks to.........

              ....all for your response. I thought it was on the message board, but I guess not. I will search google to see what comes up.
              This post is for discussion purposes only and should be verified with other sources before actual use.

              Many times I post additional info on the post, Click on "message board" for updated content.

              Comment

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