PUTS AND CALLS

[TAXMAN]

Help TP has a 1099b with a lot of puts and calls. No foggy idea how to read this thing or even attempt to put on schedule D. Anybody got any quick ideas. 1099 B was provided by thinkorswim on line service. Looks like all stcg. HELP

[TAXBILLY]

Not a good time of the year to learn about something that's a little complicated but I would google puts and calls.

taxbilly

[JRS]

Here is a site that will give you a quick idea about options: http://www.optionseducation.org/basics/whatis/default.js

Another place to look is : http://www.fairmark.com/index.htm - use their seach.

Without knowing how your client "played" the puts and calls, I can't tell you how to handle. If they "Buy" the Put or Call, it is handled just like a stock. If they "Sell", it is handled like a short sale. If the option is "assigned" or "exercised" then you add the "premium" to the basis.