October 10, 2008
Tax questions on trading options in my IRA?
SunJoonIm asked:
If I trade options in my account and I make a substantial amount in one day and sell what are the tax implications. Do I just get tax as if I were trading stocks?
If I trade options in my account and I make a substantial amount in one day and sell what are the tax implications. Do I just get tax as if I were trading stocks?
Filed under United States by Administrator
October 7, 2008
What are the tax implications of options trading?
jackiesymon asked:
If I use an option straddle strategy, and I bring in $100K over the course of the year but I lose $90K on the other side of the straddle, do I pay taxes on the $100K, or only on the $10K that I actually came away with? If I have to pay tax on the $100K, am I only allowed to deduct the max allowed loss of $3K?
If I use an option straddle strategy, and I bring in $100K over the course of the year but I lose $90K on the other side of the straddle, do I pay taxes on the $100K, or only on the $10K that I actually came away with? If I have to pay tax on the $100K, am I only allowed to deduct the max allowed loss of $3K?
Thanks!
Filed under United States by Administrator