If the covered calls expired worthless, is the premium considered income upon expiration? Or can it be a reduction of cost basis?
TIA
- posted
11 years ago
If the covered calls expired worthless, is the premium considered income upon expiration? Or can it be a reduction of cost basis?
TIA
See page 52 in IRS Pub 550 for details. You have a capital gain on the date of expiration.
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