Where do I report gains/losses on my options trades?

Discussion in 'Options' started by HotTip, Mar 26, 2008.

  1. HotTip


    So I did a handful of options trades over the course of 2007 for hedging purposes. I primarily trade equities, so all of my trades have been reported on a 4797. Do I just lump my options trades there as well? I'm a US citizen and I have not elected MTM.

    I'm just confused because my broker (IB) tells me that they don't report proceeds from any options trades on the 1099, so I wasn't sure if they should be treated differently.

    Thanks for any help.
  2. nkhoi

    nkhoi Moderator

    If your broker doesn't report, how does IRS know you report your gains correctly?
  3. Bowgett


    Schedule D
  4. If they have any doubts, they won't hesitate to ask you for more information.
  5. nkhoi

    nkhoi Moderator

    I was afraid of that.
  6. Does anyone know how to show option premium adjustments on the Sched D?

    Let's say you sold a put for 1.00 and strike price 10.00, and let it be assigned. Later you sold the stock for 20.00.

    So your cost basis is 1000 and proceeds are 2000+100.

    My 1099-B shows proceeds as 2000, but the detail shows 2100 with a note about the adjustment.

    Do I put 2000 on the Sched D and add note with the +100 adjustment, or put 2100 and note with a -100 adjustment?