Options and Taxes

[mjs_28s]

(09-26-2013, 01:26 PM)TomK Wrote: Great new area. I'm very inexperienced with options, but have always been interested.

For me a threshold question is taxes and accounting. For those of you who use options a lot, do you only do so in tax-deferred accounts? Am I right to think that if you used options heavily in a taxable account, it would be a giant hassle to track the trades and incoming premiums, not to mention the sell prices and long-term vs short-term capital gains, etc. etc.?

And am I right to think that pretty much all of that is a non-issue in a rollover or Roth IRA?

Thanks in advance!

Not really a hassle. A simple Excel spreadsheet is all you need for your end.

Regarding the detail of it, that is no worries as your broker will send you detailed statements monthly and at the end of the year with everything that is needed for tax purposes so you don't need to sweat it at all. Just keep your money in, money out, and dates and that is enough to verify what your broker sends you.