I traded options in 2006. I.e., I bought and sold calls and puts without owning the underlying stock. My net for the year was a loss of about $1200. Can I report this loss on my 2006 tax return? If so, where?? Thanks.
2007-03-03 12:22:42 · 2 answers · asked by mgm00056 1 in Business & Finance ➔ Taxes ➔ United States
Yes you can, and should, report the loss.
Usually you just report the transactions on Schedule D, just as you sould for stock transactions. Just like stocks, you can have a wash sale. Also, if you traded any spreads with offsetting positions or traded any Section 1256 contracts you will should report them on Form 6781.
As a privite investor the only Section 1256 contracts you are likely to have traded would be cash settled options on a broad market index, such as SPX options.
2007-03-03 12:35:58 · answer #1 · answered by zman492 7 · 0⤊ 0⤋
sure you nonetheless do, yet you are able to deduct the losses out of your income as a lot as $3000 and in case you lost more suitable than that you'll roll them over into destiny years (to deduct as against efficient factors contained in the destiny). There are some pc courses the position you are able to load on your month-to-month statements and they are going to reconcile the trades immediately - attempt googling this. in any case, that is significant yet could also stay away from various $$$ down the line.
2016-12-05 05:09:40 · answer #2 · answered by ? 3 · 0⤊ 0⤋