Call IRS With Tax Questions
July 28th, 2009
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Question: If you write a call or put option, what is the classification of income? (short-term cap gain or ordinary inc)
I assume it is short-term capital gain, unless you’re writing a LEAP and the expiry date is >12 months. The above question refers to an option that is “written” that merely expires worthless (out of the money) and refers to IRS tax code interpretation.
Thanks!
Answer: You are right – short term cap gain. IRS Pub 550 table 4-1.
IRS won’t be of that much help with tax questions
WASHINGTON — Need help with your taxes? Good luck reaching the IRS. Three out of 10 people who call the toll-free help line this tax season won’t get through to a human being — and that’s if the agency meets its goals for service.
GET YOUR TAX REBATE: How to Reach IRS with Questions? (ASL, Captions & Audio)
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