You don't report open positions in stocks or options on your tax return.
In order to close a short you must go to the market and acquire some securities.
The acquired date is the date you closed the short sale.
For Stocks, the disposed date is two business days later (settlement).
Options settle in one day.
But if you have a gain, Date Disposed is equal to Date Acquired.
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Option write, expires:
Since you are short, the Date Acquired shows the date of expiration.
you don't unless you are using mark-to-market 475(f) tax rules.
My broker has listed the open short call on my 1099-b and has included the premium recieved as income. I need a way to offset the gain or pay tax on premium recieved as it is reflected in the P/L.
My broker has listed the open short call on my 1099-b and has included the premium recieved as income. I need a way to offset the gain or pay tax on premium recieved as it is reflected in the P/L.
some brokers report 1099-B compliant with IRS instructions, and some do not.
You'll have to decide how to handle it.
a premium credit on your consolidated 1099-B is not reportable unless it is designated into one of the broker reported Box Categories A,B,D or E.