Can anyone provide me with examples on how to report on 8949?
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There is adequate CE material out there, I found one course textbook in my collection immediately, but better yet, have you tried the chart in TheTaxBook? Look for "Tax Rules for Calls and Puts". The chart covers pretty much every possible outcome, and is followed by one numeric example. For reference, here is what can happen once an option is bought by a holder:
• The option may be allowed to expire.
• The option may be sold to someone else.
• The option may be sold back to the writer.
• The option may be exercised.
I think the chart covers all of these possibilities.
p.s. Welcome to the forum!"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
"That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe Howard -
In addition to Robert's post
See instruction for Schedule D page D-7Comment
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Use tax software for quidance
Agree with each of the above.
In addition, most tax software now pretty much can walk you through the various put/call possibilities if you use the Q&A option for the data entry. Most are of the "Check here if this is a purchased option that expired" and similar related possibilities.
(Stated differently -- Don't be afraid to step away from constant use of the "forms only" option!)
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