I occasionally sell options for premium (aka short options). As option seller I receive premium or credit at beginning of the trade (sell to open). The question...
If i short sell an option contract in December 2024 for premium but don't close the trade until Jan 2025, will the income be reportable in 2024 tax year or 2025? I'm getting confusing answers elsewhere where some say that receiving premium (opening trade) is a taxable event so it must be reported as income in 2024. While others say it's reportable in 2025 when option contract expires or I close the trade in new year.
