tax question

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

  1. Sanity

    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

    trdrmac

    Sanity,

    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

    Sanity

    thanks for the info :)