全国开奖:
Tax Issues

How are covered calls taxed?

The IRS wants to make sure investors do not use deep-in-the-money options when writing covered calls since that would allow investors to possibly:

  • Mismatch gains and losses in different tax years
  • Substantially reduce the risk of holding positions

As a result, the IRS developed the Qualified Covered Call (QCC) rules. Generally, if an investor is seeking to grow the underlying security position to long-term capital gain status, while preserving Qualified Dividend Income (QDI), they should limit their call writing activities to at-the-money and out-of-the-money options with 30 days or more until expiration. However, if an investor utilizes calls with greater than 12 months to expiration, they will have to adjust the Lowest Qualified Benchmark (LQB) by 2% per quarter.

The call premium received from a QCC will be recognized as a short-term capital gain if the option expires or the investor enters into a closing transaction. However, if the option is assigned, the premium will be taxed in accordance with the underlying stock position.

How are protective puts taxed?


If your position in the stock is not eligible for long-term capital gains treatment and you purchase a protective put, your holding period is eliminated. Unfortunately, your holding period will not restart until the put is disposed. However, a put purchase will not affect your holding period if either:

  • The stock is already eligible for long-term capital gains treatment
  • The put is “married” to the stock purchase

In either scenario, Qualified Dividend Income (QDI) is forfeited while the put is in place.



* Please be aware of the fact that tax laws and regulations can change and are subject to varying interpretations. Investors should consult with tax advisors for up-to-date tax advice applying to their particular investments.

'; $('body').prepend(noscript);
  • “基因魔剪”安全性再遭质疑 2019-04-22
  • 武汉市武昌区:社区学校筑平台 班长议事谋担当 2019-04-22
  • 世界最强大超级计算机诞生?运算峰值每秒20亿亿次,远超中国神威 2019-04-20
  • 济南时报总编辑赵治国祝贺人民日报创刊70周年 2019-04-20
  • 丢掉再次谈判的幻想,中国要作好长期与美国打贸易战的准备。这并不是我们好战,完全是因为特朗普是一个出尔反尔、六亲不认、利欲熏心、执意与世界为敌的疯子。我们必... 2019-04-19
  • 黑龙江国际生态旅游峰会“解锁”绿色经济时代 2019-04-19
  • 为什么截留信马克的帖子?这还有摆事实讲道理存在吗? 2019-04-16
  • 6月温州市区普通商品住房地块集中出让 2019-04-14
  • 银行理财预期收益连续3个月下跌 2019-04-14
  • 【新媒体矩阵】雄安见闻 2019-04-12
  • 《中国教育报》电子版 2019-04-12
  • 照片审核处理工具使用说明 2019-04-04
  • 谈谈人的本质——显意识下的潜意识【骨子里】——条件反射,或者不自觉行动的客观唯物性 2019-04-04
  • “西瓜足迹”瞎掰与“晒的虚荣” 2019-04-03
  • LADY咔咔(40)这台7座SUV祖传治中风 2019-04-03
  • 392| 512| 202| 214| 582| 398| 975| 463| 892| 157|