Can we agree on the basic premise that numbers can increase, decrease, or stay the same?
Based upon that premise, if there is a loss of lets just say $8000 that is disallowed:
I wouldn't expect that my taxable income would increase by $8000 and I wouldn't expect my taxable income would decrease by $8000. My taxable income shouldn't change.
Why would a non-deductible loss be considered a gain? There are all sorts of tax credits that I can't take because of various reasons (like I don't have kids) but just because I can't apply those tax credits doesn't make my AGI increase.
This makes even less sense on options contracts that have been expired for a year as there is no possibility that in the future I will be able to claim that loss.
