Collar option tax reporting question

Apr 10, 2010 1 Replies

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RobertS 16 years ago

Last year 4/28/09, I created a collar by buying 100 shares of LNC at

10.24, 1 out of the money put option on LNC and simultaneously selling
1 call option on LNC with the right to exercise at $10/share which the person I sold the option to did on 06/19/09. The put option expired worthless. Do I need to enter this transaction into IRS form 6781?

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JoeTaxpayer 16 years ago

My understanding is that form 6781 is only used for Section 1256 items, and that does not include equity options. These are geared toward commodities and other mark-to-market-at-year-end type positions. I believe what you have are all Schedule D reportable.

Joe

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