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$7K
"DB" <> wrote in message news  m...> Option trading in 2008. Probably about 50 trades with $10K. Made about > $7K. Pulled principal (10K) in fall and had all earnings (7K) in other > options on 12/31/08. Current value of option on 12/31/08 was only about > 2K. > What do I pay taxes on, 2K or 7K? Thanks. DB > > |
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OK, so if I sell this year for 2k, do I get to deduct 5k from my 2009
earnings? "P. Maffia" <> wrote in message news: et... > $7K > > "DB" <> wrote in message > news m...>> Option trading in 2008. Probably about 50 trades with $10K. Made about >> $7K. Pulled principal (10K) in fall and had all earnings (7K) in other >> options on 12/31/08. Current value of option on 12/31/08 was only about >> 2K. >> What do I pay taxes on, 2K or 7K? Thanks. DB >> >> > |
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NO! You get to deduct the losses against any gains. Then if there is any
loss left over, you get to deduct only up to $3,000 against regular income and if any loss is left over, you carry it forward to future years until it is all used. Just as a point of information for everyone, You should understand the tax implications of any financial activity you undertake BEFORE you engage in the activity. Although tax consequences should never be the sole determinate of what you do, you should understand them because not doing so could make the difference between success or failure. "DB" <> wrote in message news: m... > OK, so if I sell this year for 2k, do I get to deduct 5k from my 2009 > earnings? > > > "P. Maffia" <> wrote in message > news: et... >> $7K >> >> "DB" <> wrote in message >> news m...>>> Option trading in 2008. Probably about 50 trades with $10K. Made about >>> $7K. Pulled principal (10K) in fall and had all earnings (7K) in other >>> options on 12/31/08. Current value of option on 12/31/08 was only about >>> 2K. >>> What do I pay taxes on, 2K or 7K? Thanks. DB >>> >>> >> > > > |
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I guess 3K is better than nothing. Seems I should have liquidated on 12/31!
"P. Maffia" <> wrote in message news: et... > NO! You get to deduct the losses against any gains. Then if there is any > loss left over, you get to deduct only up to $3,000 against regular income > and if any loss is left over, you carry it forward to future years until > it is all used. > > Just as a point of information for everyone, You should understand the tax > implications of any financial activity you undertake BEFORE you engage in > the activity. Although tax consequences should never be the sole > determinate of what you do, you should understand them because not doing > so could make the difference between success or failure. > > > "DB" <> wrote in message > news: m... >> OK, so if I sell this year for 2k, do I get to deduct 5k from my 2009 >> earnings? >> >> >> "P. Maffia" <> wrote in message >> news: et... >>> $7K >>> >>> "DB" <> wrote in message >>> news m...>>>> Option trading in 2008. Probably about 50 trades with $10K. Made >>>> about >>>> $7K. Pulled principal (10K) in fall and had all earnings (7K) in other >>>> options on 12/31/08. Current value of option on 12/31/08 was only >>>> about 2K. >>>> What do I pay taxes on, 2K or 7K? Thanks. DB >>>> >>>> >>> >> >> >> > |
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"DB" <> wrote in message news m...> Option trading in 2008. Probably about 50 trades with $10K. Made about > $7K. Pulled principal (10K) in fall and had all earnings (7K) in other > options on 12/31/08. Current value of option on 12/31/08 was only about > 2K. > What do I pay taxes on, 2K or 7K? Thanks. DB Were any of the options held on 12/31/08 Section 1256 contracts (index options)? There are different tax rules for Section 1256 contracts, such as year end mark to market. |
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"catalpa" <> wrote in message news  yz8l.3732$...> > "DB" <> wrote in message > news m...>> Option trading in 2008. Probably about 50 trades with $10K. Made about >> $7K. Pulled principal (10K) in fall and had all earnings (7K) in other >> options on 12/31/08. Current value of option on 12/31/08 was only about >> 2K. >> What do I pay taxes on, 2K or 7K? Thanks. DB > > Were any of the options held on 12/31/08 Section 1256 contracts (index > options)? There are different tax rules for Section 1256 contracts, such > as year end mark to market. > > > No. They are mostly put options on individual stocks, ...mostly. |
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