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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I invest with options and place a vertical call spread. The

Customer Question

I invest with options and place a vertical call spread. The stock dropped and I bought my offsetting position for a gain in 2015, but my underlying position expired for worthless in 2015. Basically, at the end of 2014, I have a realized gain of 17K, but an unrealized loss of 34K. Is there any provision to defer reporting the gain until 2015 because the two positions entered at the same time and meant to offset my risk.
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

Stocks you sold in 2014 have to be reported on your 2014 return and stocks sold in 2015 have to be reported on your 2015 return. You don't report gain/loss until you dispose/sell the stock so your unrealized loss is irrelevant for tax purposes until you sell it and the loss becomes realized. Unfortunately there's no provision for differing capital gains. Disposition of capital assets, including investments have t be reported in the year of disposition or sell.

Sorry if that's not answer you were hopping for.

Let me know if you have any questions.

Customer: replied 1 year ago.
Are you familiar the US Code 1092 with straddles? My case seems similar....
Expert:  emc011075 replied 1 year ago.

Yes, but there were some major changes to the law in summer of 2014 I am not familiar with. So let me opt out, maybe another expert will be able to help.

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