CFC at $7.60

[drunkle]

flu:

brokerage statement? what brokerage statement?

so what’s on the plate for tomorrow. too late to do anything about it, but i have a feeling things are going to pop. wish i didn’t miss closing, i might have closed out some positions, opened more up side positions.

clinton and mccain got nh. seems positive for wall street.

[Coronita]

flu:

brokerage statement? what brokerage statement?

so what's on the plate for tomorrow. too late to do anything about it, but i have a feeling things are going to pop. wish i didn't miss closing, i might have closed out some positions, opened more up side positions.

clinton and mccain got nh. seems positive for wall street.

 

Argg…do I sort of have to spell this out?

Brokerage firms send out a 1099 form to IRS and an extended-1099 form to you. It's to my understanding, in the past what appears on the IRS1099 is typically securities sold that year. (No options transaction. Come to think of it, no information on when you buy either). The 1099 documents sent to you usually say "this information is being sent to the IRS", and another section says "this information is being provide for your benefit but not sent to the IRS"…

 

It would seem options would be a bitch and a half for the IRS to figure out in their automated systems that screen and flags returns for audit. Options are not just simply bought or sold, but come and go through the nature of expiration,occasionally even get renamed at times, vary based on other factors in very short periods all making it extremely complicated manage.

Consider a very simple scenario… Let's say you write options, say a covered call. You give someone a right to buy a stock at a given price X. Let's say the option price is $5 and you write 1 contract. You get credited for the stock option you sold at $500 (1 contract = 100shrs), though it's not considered profit or loss yet, because you haven't closed the position.If the option expires worthless before end of this year, you recognize a profit automatically that year. If the expiration is not until next year, then it gets recognized next year. Also, this assumes the option expired worthless. What if it didn't expire worthless (IE the other person was able to exercise it, you had to cough up the extra stock,etc). You got the $500, but it might not be all profit, because you had to provide stock to the option holder. I challenge you to find a brokerage firm that reports option expirations in the IRS1099. If it it were, I doubt the IRS's automated system for flagging returns for audit will be able to do something meaningful with option expiration information alone (at least in the current state, perhaps as things get more sophisticated years down the road).

 

I'm not suggesting anyone do anything on their taxes, afterall the Fed does need your hard-earned money to bailout all the subprimes, poor savers, etc….Also, standard disclaimer applies to actually execute on this, since if you are one of the unfortunate people that happen to get randomly audited, and in due process of a in-person audit, they want to look at your actual brokerage account statements, you would be pretty screwed….But, the speculation on the implications are left as an exercise. Consider the game as russian roulette with a 20 chamber revolver and 1 bullet loaded. Wanna play?

 

And if there's an IRS person lurking around here, go ahead and audit me. My last audit uncovered that I was actually owed more in refund than I received. And besides, I have enough losses on my options trading each year to fully report, since I typically buy put options that usually expire worthless..for the purpose of using them as sort of insurance to hedge against in-the-money incentive stock options offered by my employers that are near vesting…just in case the company's stock tanks or I have to enter a blackout window before I can do something with those company options.

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

flu:

brokerage statement? what brokerage statement?

so what's on the plate for tomorrow. too late to do anything about it, but i have a feeling things are going to pop. wish i didn't miss closing, i might have closed out some positions, opened more up side positions.

clinton and mccain got nh. seems positive for wall street.

 

Argg…do I sort of have to spell this out?

Brokerage firms send out a 1099 form to IRS and an extended-1099 form to you. It's to my understanding, in the past what appears on the IRS1099 is typically securities sold that year. (No options transaction. Come to think of it, no information on when you buy either). The 1099 documents sent to you usually say "this information is being sent to the IRS", and another section says "this information is being provide for your benefit but not sent to the IRS"…

 

It would seem options would be a bitch and a half for the IRS to figure out in their automated systems that screen and flags returns for audit. Options are not just simply bought or sold, but come and go through the nature of expiration,occasionally even get renamed at times, vary based on other factors in very short periods all making it extremely complicated manage.

Consider a very simple scenario… Let's say you write options, say a covered call. You give someone a right to buy a stock at a given price X. Let's say the option price is $5 and you write 1 contract. You get credited for the stock option you sold at $500 (1 contract = 100shrs), though it's not considered profit or loss yet, because you haven't closed the position.If the option expires worthless before end of this year, you recognize a profit automatically that year. If the expiration is not until next year, then it gets recognized next year. Also, this assumes the option expired worthless. What if it didn't expire worthless (IE the other person was able to exercise it, you had to cough up the extra stock,etc). You got the $500, but it might not be all profit, because you had to provide stock to the option holder. I challenge you to find a brokerage firm that reports option expirations in the IRS1099. If it it were, I doubt the IRS's automated system for flagging returns for audit will be able to do something meaningful with option expiration information alone (at least in the current state, perhaps as things get more sophisticated years down the road).

 

I'm not suggesting anyone do anything on their taxes, afterall the Fed does need your hard-earned money to bailout all the subprimes, poor savers, etc….Also, standard disclaimer applies to actually execute on this, since if you are one of the unfortunate people that happen to get randomly audited, and in due process of a in-person audit, they want to look at your actual brokerage account statements, you would be pretty screwed….But, the speculation on the implications are left as an exercise. Consider the game as russian roulette with a 20 chamber revolver and 1 bullet loaded. Wanna play?

 

And if there's an IRS person lurking around here, go ahead and audit me. My last audit uncovered that I was actually owed more in refund than I received. And besides, I have enough losses on my options trading each year to fully report, since I typically buy put options that usually expire worthless..for the purpose of using them as sort of insurance to hedge against in-the-money incentive stock options offered by my employers that are near vesting…just in case the company's stock tanks or I have to enter a blackout window before I can do something with those company options.

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

flu:

brokerage statement? what brokerage statement?

so what's on the plate for tomorrow. too late to do anything about it, but i have a feeling things are going to pop. wish i didn't miss closing, i might have closed out some positions, opened more up side positions.

clinton and mccain got nh. seems positive for wall street.

 

Argg…do I sort of have to spell this out?

Brokerage firms send out a 1099 form to IRS and an extended-1099 form to you. It's to my understanding, in the past what appears on the IRS1099 is typically securities sold that year. (No options transaction. Come to think of it, no information on when you buy either). The 1099 documents sent to you usually say "this information is being sent to the IRS", and another section says "this information is being provide for your benefit but not sent to the IRS"…

 

It would seem options would be a bitch and a half for the IRS to figure out in their automated systems that screen and flags returns for audit. Options are not just simply bought or sold, but come and go through the nature of expiration,occasionally even get renamed at times, vary based on other factors in very short periods all making it extremely complicated manage.

Consider a very simple scenario… Let's say you write options, say a covered call. You give someone a right to buy a stock at a given price X. Let's say the option price is $5 and you write 1 contract. You get credited for the stock option you sold at $500 (1 contract = 100shrs), though it's not considered profit or loss yet, because you haven't closed the position.If the option expires worthless before end of this year, you recognize a profit automatically that year. If the expiration is not until next year, then it gets recognized next year. Also, this assumes the option expired worthless. What if it didn't expire worthless (IE the other person was able to exercise it, you had to cough up the extra stock,etc). You got the $500, but it might not be all profit, because you had to provide stock to the option holder. I challenge you to find a brokerage firm that reports option expirations in the IRS1099. If it it were, I doubt the IRS's automated system for flagging returns for audit will be able to do something meaningful with option expiration information alone (at least in the current state, perhaps as things get more sophisticated years down the road).

 

I'm not suggesting anyone do anything on their taxes, afterall the Fed does need your hard-earned money to bailout all the subprimes, poor savers, etc….Also, standard disclaimer applies to actually execute on this, since if you are one of the unfortunate people that happen to get randomly audited, and in due process of a in-person audit, they want to look at your actual brokerage account statements, you would be pretty screwed….But, the speculation on the implications are left as an exercise. Consider the game as russian roulette with a 20 chamber revolver and 1 bullet loaded. Wanna play?

 

And if there's an IRS person lurking around here, go ahead and audit me. My last audit uncovered that I was actually owed more in refund than I received. And besides, I have enough losses on my options trading each year to fully report, since I typically buy put options that usually expire worthless..for the purpose of using them as sort of insurance to hedge against in-the-money incentive stock options offered by my employers that are near vesting…just in case the company's stock tanks or I have to enter a blackout window before I can do something with those company options.

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

flu:

brokerage statement? what brokerage statement?

so what's on the plate for tomorrow. too late to do anything about it, but i have a feeling things are going to pop. wish i didn't miss closing, i might have closed out some positions, opened more up side positions.

clinton and mccain got nh. seems positive for wall street.

 

Argg…do I sort of have to spell this out?

Brokerage firms send out a 1099 form to IRS and an extended-1099 form to you. It's to my understanding, in the past what appears on the IRS1099 is typically securities sold that year. (No options transaction. Come to think of it, no information on when you buy either). The 1099 documents sent to you usually say "this information is being sent to the IRS", and another section says "this information is being provide for your benefit but not sent to the IRS"…

 

It would seem options would be a bitch and a half for the IRS to figure out in their automated systems that screen and flags returns for audit. Options are not just simply bought or sold, but come and go through the nature of expiration,occasionally even get renamed at times, vary based on other factors in very short periods all making it extremely complicated manage.

Consider a very simple scenario… Let's say you write options, say a covered call. You give someone a right to buy a stock at a given price X. Let's say the option price is $5 and you write 1 contract. You get credited for the stock option you sold at $500 (1 contract = 100shrs), though it's not considered profit or loss yet, because you haven't closed the position.If the option expires worthless before end of this year, you recognize a profit automatically that year. If the expiration is not until next year, then it gets recognized next year. Also, this assumes the option expired worthless. What if it didn't expire worthless (IE the other person was able to exercise it, you had to cough up the extra stock,etc). You got the $500, but it might not be all profit, because you had to provide stock to the option holder. I challenge you to find a brokerage firm that reports option expirations in the IRS1099. If it it were, I doubt the IRS's automated system for flagging returns for audit will be able to do something meaningful with option expiration information alone (at least in the current state, perhaps as things get more sophisticated years down the road).

 

I'm not suggesting anyone do anything on their taxes, afterall the Fed does need your hard-earned money to bailout all the subprimes, poor savers, etc….Also, standard disclaimer applies to actually execute on this, since if you are one of the unfortunate people that happen to get randomly audited, and in due process of a in-person audit, they want to look at your actual brokerage account statements, you would be pretty screwed….But, the speculation on the implications are left as an exercise. Consider the game as russian roulette with a 20 chamber revolver and 1 bullet loaded. Wanna play?

 

And if there's an IRS person lurking around here, go ahead and audit me. My last audit uncovered that I was actually owed more in refund than I received. And besides, I have enough losses on my options trading each year to fully report, since I typically buy put options that usually expire worthless..for the purpose of using them as sort of insurance to hedge against in-the-money incentive stock options offered by my employers that are near vesting…just in case the company's stock tanks or I have to enter a blackout window before I can do something with those company options.

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

flu:

brokerage statement? what brokerage statement?

so what's on the plate for tomorrow. too late to do anything about it, but i have a feeling things are going to pop. wish i didn't miss closing, i might have closed out some positions, opened more up side positions.

clinton and mccain got nh. seems positive for wall street.

 

Argg…do I sort of have to spell this out?

Brokerage firms send out a 1099 form to IRS and an extended-1099 form to you. It's to my understanding, in the past what appears on the IRS1099 is typically securities sold that year. (No options transaction. Come to think of it, no information on when you buy either). The 1099 documents sent to you usually say "this information is being sent to the IRS", and another section says "this information is being provide for your benefit but not sent to the IRS"…

 

It would seem options would be a bitch and a half for the IRS to figure out in their automated systems that screen and flags returns for audit. Options are not just simply bought or sold, but come and go through the nature of expiration,occasionally even get renamed at times, vary based on other factors in very short periods all making it extremely complicated manage.

Consider a very simple scenario… Let's say you write options, say a covered call. You give someone a right to buy a stock at a given price X. Let's say the option price is $5 and you write 1 contract. You get credited for the stock option you sold at $500 (1 contract = 100shrs), though it's not considered profit or loss yet, because you haven't closed the position.If the option expires worthless before end of this year, you recognize a profit automatically that year. If the expiration is not until next year, then it gets recognized next year. Also, this assumes the option expired worthless. What if it didn't expire worthless (IE the other person was able to exercise it, you had to cough up the extra stock,etc). You got the $500, but it might not be all profit, because you had to provide stock to the option holder. I challenge you to find a brokerage firm that reports option expirations in the IRS1099. If it it were, I doubt the IRS's automated system for flagging returns for audit will be able to do something meaningful with option expiration information alone (at least in the current state, perhaps as things get more sophisticated years down the road).

 

I'm not suggesting anyone do anything on their taxes, afterall the Fed does need your hard-earned money to bailout all the subprimes, poor savers, etc….Also, standard disclaimer applies to actually execute on this, since if you are one of the unfortunate people that happen to get randomly audited, and in due process of a in-person audit, they want to look at your actual brokerage account statements, you would be pretty screwed….But, the speculation on the implications are left as an exercise. Consider the game as russian roulette with a 20 chamber revolver and 1 bullet loaded. Wanna play?

 

And if there's an IRS person lurking around here, go ahead and audit me. My last audit uncovered that I was actually owed more in refund than I received. And besides, I have enough losses on my options trading each year to fully report, since I typically buy put options that usually expire worthless..for the purpose of using them as sort of insurance to hedge against in-the-money incentive stock options offered by my employers that are near vesting…just in case the company's stock tanks or I have to enter a blackout window before I can do something with those company options.

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[drunkle]

lol! when i said “what brokerage statement”, i was suggesting that i haven’t even looked at my mail in awhile… in fact, i dont think i’ve ever looked at any of my brokerage mail…

this is my first year gambling on stocks (and not with a large bankroll) so i’ve never had to deal with the tax implications. on top of that, i file 1040ez!

heh, i’m friends with an accounting office so i may hit them up come april 13th to do my taxes. if it even comes to that, my gains and losses have put me near zero… i’m sure standard deduction will be fine… heh!

you know, as far as i can tell, the accounting seems easy enough. i input a certain amount of cash, a bank transfer into my scottrade account. that money is all i have to play with, margin trades not withstanding. those would be easy enough to account as well, someone has a record of “credit” since they’re charging interest on it. at the end of the year, your total balance is compared to your cash input. if the balance is greater than the cash input, i made a profit and that profit gets taxed. if i lost money, i can deduct whatever the max deduction available is.

i can also talk to my boss about it, he’s been gambling on options (and is really the one that goaded me into it) for awhile.

[drunkle]

lol! when i said “what brokerage statement”, i was suggesting that i haven’t even looked at my mail in awhile… in fact, i dont think i’ve ever looked at any of my brokerage mail…

this is my first year gambling on stocks (and not with a large bankroll) so i’ve never had to deal with the tax implications. on top of that, i file 1040ez!

heh, i’m friends with an accounting office so i may hit them up come april 13th to do my taxes. if it even comes to that, my gains and losses have put me near zero… i’m sure standard deduction will be fine… heh!

you know, as far as i can tell, the accounting seems easy enough. i input a certain amount of cash, a bank transfer into my scottrade account. that money is all i have to play with, margin trades not withstanding. those would be easy enough to account as well, someone has a record of “credit” since they’re charging interest on it. at the end of the year, your total balance is compared to your cash input. if the balance is greater than the cash input, i made a profit and that profit gets taxed. if i lost money, i can deduct whatever the max deduction available is.

i can also talk to my boss about it, he’s been gambling on options (and is really the one that goaded me into it) for awhile.

[drunkle]

lol! when i said “what brokerage statement”, i was suggesting that i haven’t even looked at my mail in awhile… in fact, i dont think i’ve ever looked at any of my brokerage mail…

this is my first year gambling on stocks (and not with a large bankroll) so i’ve never had to deal with the tax implications. on top of that, i file 1040ez!

heh, i’m friends with an accounting office so i may hit them up come april 13th to do my taxes. if it even comes to that, my gains and losses have put me near zero… i’m sure standard deduction will be fine… heh!

you know, as far as i can tell, the accounting seems easy enough. i input a certain amount of cash, a bank transfer into my scottrade account. that money is all i have to play with, margin trades not withstanding. those would be easy enough to account as well, someone has a record of “credit” since they’re charging interest on it. at the end of the year, your total balance is compared to your cash input. if the balance is greater than the cash input, i made a profit and that profit gets taxed. if i lost money, i can deduct whatever the max deduction available is.

i can also talk to my boss about it, he’s been gambling on options (and is really the one that goaded me into it) for awhile.

[drunkle]

lol! when i said “what brokerage statement”, i was suggesting that i haven’t even looked at my mail in awhile… in fact, i dont think i’ve ever looked at any of my brokerage mail…

this is my first year gambling on stocks (and not with a large bankroll) so i’ve never had to deal with the tax implications. on top of that, i file 1040ez!

heh, i’m friends with an accounting office so i may hit them up come april 13th to do my taxes. if it even comes to that, my gains and losses have put me near zero… i’m sure standard deduction will be fine… heh!

you know, as far as i can tell, the accounting seems easy enough. i input a certain amount of cash, a bank transfer into my scottrade account. that money is all i have to play with, margin trades not withstanding. those would be easy enough to account as well, someone has a record of “credit” since they’re charging interest on it. at the end of the year, your total balance is compared to your cash input. if the balance is greater than the cash input, i made a profit and that profit gets taxed. if i lost money, i can deduct whatever the max deduction available is.

i can also talk to my boss about it, he’s been gambling on options (and is really the one that goaded me into it) for awhile.

[drunkle]

lol! when i said “what brokerage statement”, i was suggesting that i haven’t even looked at my mail in awhile… in fact, i dont think i’ve ever looked at any of my brokerage mail…

this is my first year gambling on stocks (and not with a large bankroll) so i’ve never had to deal with the tax implications. on top of that, i file 1040ez!

heh, i’m friends with an accounting office so i may hit them up come april 13th to do my taxes. if it even comes to that, my gains and losses have put me near zero… i’m sure standard deduction will be fine… heh!

you know, as far as i can tell, the accounting seems easy enough. i input a certain amount of cash, a bank transfer into my scottrade account. that money is all i have to play with, margin trades not withstanding. those would be easy enough to account as well, someone has a record of “credit” since they’re charging interest on it. at the end of the year, your total balance is compared to your cash input. if the balance is greater than the cash input, i made a profit and that profit gets taxed. if i lost money, i can deduct whatever the max deduction available is.

i can also talk to my boss about it, he’s been gambling on options (and is really the one that goaded me into it) for awhile.

[kev374]

$4.60 now, good god!

[kev374]

$4.60 now, good god!

[kev374]

$4.60 now, good god!

[kev374]

$4.60 now, good god!

[Author]

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