tax question

Discussion in 'Options' started by Sanity, Jan 7, 2003.

  1. Sanity


    does anyone know the correct tax treatment for options that expire worthless? is it the same as a buy and sell loss? also, how can this be noted in the return, since there is no sale price to calculate a p/l from. thanks a lot.
  2. trdrmac



    Assuming these were options you purchased you can treat these as Capital Losses. Most tax software will code this so the netting is correct. I am pretty sure that the losses are treated as short term capital losses, but I loaned out my tax guide so I can't check the exact treatment.

    The instructions for Schedule D should give you an idea how to present them on your return if you are doing your return manually.
  3. Sanity


    thanks for the info :)