Calls on ML statement

[oceanlovin'ea]

I need some help with calls. I don't really understand this part of the stock market, but I read TB page 6-8 and 6-9 about call options. It tells you what to do when a call is exercised, expires or is sold by the holder.

The asterick beside the calls say "This transaction denotes the gain or loss on the sale of an option. While option sales are not subject to 1099-B reporting, the gain or loss information is relevant." What does that mean???????

Are calls supposed to be listed on the schedule D?

Thanks Linda

[Matt Sova]

Options

Yes, options are not listed on a 1099-B. Stupid as that sounds, it is the truth. These are gains and losses to be reported on schedule D just like other stock sales.

Matt

[oceanlovin'ea]

Thanks

Matt, I appreciate your answer. I had put them on the Schedule D and then the amount didin't agree with the 1099-B, so I was second guessing myself.

Linda F

[Matt Sova]

1099-B and Sch D

As long as Sch D sales are > or = the 1099-B you are ok.