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Get your taxes done using TurboTax
reporting of the short sale of the put for tax purposes is in the year the position expires or you purchase to close. a short sale expiring or purchased to close is short-term capital gain/loss. if the put is exercised it reduces the cost basis of the stock acquired. There is no tax reporting until the underlying stock is sold.
this assumes you are not a trader who made the mark-to-mark election.
‎December 4, 2023
8:46 AM