Taxable amount of a ShortSale

I made an options short sale of $350 that will be finalized in the future (ie. on the options expiry date),
and received an immediate premium of $40. Does this make a net sale of $350, or $310, or $390 ?
Can a taxman answer this please?

 

I'm no tax person at all, and have come here for answers myself, but i believe you are paying taxes just on the immediate premium of $40

 

Its a satisfying feeling to open a thread and see no posts whatsoever.

 

Yes, makes sense.
But I'm afraid the broker's statement will tell a much different story to the tax office,
b/c it seems somehow the broker thinks the sale was even $390, ie. the sum of both values...

 

I am no taxman and no tax expert.

BUT!!!
One thing I know very well;

The more tax you pay, the happier you are !!!!!

If you are paying $1 tax, that means you only earn $10k/yr.

If you are paying $1m tax, that means you are earning tons and tons of money.

REJOICE !!!!!

 

@maxinger, it's all relative...
Ie. comparing percentages, not absolute values.

 

Trust me I understand...im going back with my broker now over something I know is incorrect yet they keep failing to correct it. I have a feeling most statements and 1099s are far from accurate

 

I think we have to trace this scenario of stock option shortselling further to verify whether
the broker's statement correctly handles (for tax issues etc.) all the possible cases related to such a sale.

Imagine this Put shortselling: we have to differentiate for all these 4 cases:
1) Option expires worthless (OTM for the counterparty); no need for us to buy the stock.
2) Auto-assignment (at expiration) if ITM for counterparty, initiated by broker or the OCC clearing; afterwards we own the stock.
3) Early-assignment (initiated by counterparty), afterwards we own the stock.
4) Early-closing by buying-back the option (initiated by us); no need for us to buy the stock.

See also
https://www.optionseducation.org/referencelibrary/faq/options-exercise

 

Why didn't you receive the entire $350? Isn't all premium immediate and all that matters for tax is how much you keep

 

I got all the premium: it was the said $0.40 --> $40 per contract.
The $350 is the CashAcct collateral for the said strike 3.50.
The broker seems to say I sold for $390 (the 350 + the 40). It's IMO really funny how the broker views this.

The broker clearly says "UnsettledCash is $390" (IMO that statement is questionable as well).
I try to figure out whether he also says I have to declare $390 for tax payment...
How would you interpret such a broker?