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Discussion Forum Index --> Advanced Tax Questions --> Rolling covered calls and taxes
Discussion Forum Index --> Tax Questions --> Rolling covered calls and taxes
Dino (talk|edits) said:
| 13 March 2008
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| I have a situation involving owning a Stock and writing Covered Calls on it, and periodic rolling of the Call position. Before expiry, the short position in Call is covered and a new Call written for the next month. So, it's either a Calendar Roll, or a Diagonal Roll. (1) Does this trigger wash sale rule? (2) Does this fall under straddle rule, meaning the cost basis of Stock position only can be adjusted? Thanks.
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CalifCPA (talk|edits) said:
| 13 March 2008
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| Sounds like an identified straddle. Agree that the basis of the stock would be adjusted.
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Dino (talk|edits) said:
| 14 March 2008
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| Thanks. Another question on how-to -- does Turbotax automatically identify the straddle, and the strikes/days for qualified covered calls?
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