Does anyone know what to do with an option premium? The 1099 says not reported to IRS and then lsits 5 different option premiuims paid during the year totalling $700.
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If you are talking about Puts and Calls, they are reported on Schedule D, just like stock transactions. -
Not quite that simple
Put and call options are securities that are bought and sold, so, yes, they generally involve transactions that are reported on Schedule D.
But if a call option is exercised, that means the underlying stock was purchased, and the option premium is added to the basis of the stock.
There's other variables as well. Many options expire worthless, so the sale price may well be zero.
Sophisticated traders may be selling options short. So the purchase date may be earlier than the date of disposition.
Need more info, MarkBurton M. Koss
koss@usakoss.net
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