If you write a call or put option, what is the classification of income? (short-term cap gain or ordinary inc)
I assume it is short-term capital gain, unless you're writing a LEAP and the expiry date is >12 months. The above question refers to an option that is "written" that merely expires worthless (out of the money) and refers to IRS tax code interpretation.
- Bob FLv 61 decade agoFavorite Answer
You are right - short term cap gain. IRS Pub 550 table 4-1.