Options

[BOB W]

I had thought I read that Option trading will now be reported on a 1099B. Has anyone else read anything about this?

[Snaggletoof]

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.

[DaveO]

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.

[Bees Knees]

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.

[sea-tax]

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.

[Nancy]

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.

[BOB W]

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.