It is absolutely crucial to build at least a basic understanding of tax laws prior to embarking upon any options trades. In this article, we will look at how calls and puts are taxed in the US, namely, calls and puts for the purpose of exercise, as well as calls and puts traded on their own. But before we go any further, please note that the author is not a tax professional and this article should only serve as an introduction to the tax treatment of options. An example of that form is shown here.For example, any gains recognized in one year are deemed to be sold on the last business day of the year.
Subsequently, the held option is also deemed to be repurchased on the same day with a new cost This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. An especially complex area of risk involves taxes. If you are like most people, you understand how taxation works, generally speaking.
Taxation put call and options srpt of