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.