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What You Should Know About Taxes on Options Trades & Futures

How Stock and Future Options Are Taxed & Reported
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Content

Platform: Udemy
Video: 3h 32m
Language: English
Next start: On Demand

Table of contents

Description

Options are a poorly understood asset class to most investors, but have many uses for astute planners. No, we aren’t talking about the type of options your company might grant you, but publicly traded options. For example, adding an options enhancement component to your overall investment strategy may be a great way to enhance how much income your portfolio produces. But what are the tax implications of more income?
Assuming we are talking about a taxable account, it depends on what type of options being traded: options on individual stocks, or index options (think S&P 500, Russell 2000, Nasdaq 100, etc). We can and do trade both types, depending on the situation. Though there are exceptions, most individual stock options we trade will be taxed 100% at your short-term tax rate — as ordinary income.
One benefit index options have over individual stock options is the IRS treats them as “Section 1256 Contracts,” named for the section of the IRS Code that describes how investments like some options must be reported and taxed. Regardless of how long you own them, gains/losses on Section 1256 contracts are treated as being 60% long-term gains and 40% short term. A simple way to remember that is this: you get a tax advantage on 60% of your gains since the long-term capital gains rates are less than the ordinary income rates for all income levels.

You will learn

✓ Day trading
✓ swing trading
✓ stock trading
✓ stock market
✓ stocks
✓ options

Requirements

• Understand the basics of the stock market

This course is for

• People Needing To Understand Tax Aspects of The Stock Market
Professional Momentum Day and Swing Trader Helping Others
Founder and President of Socrates Trading, a Proprietary Trading firm specializing in Trading and Investing in Stocks and Options.Socrates Trading is one of the largest communities of active day traders and investors. We provide educational content to over 5,000+ active followers and over 500+ premium members growing every single day. The global trading community has gathered around Socrates Trading because we create profitable traders with a lifestyle of freedom and independence. Regardless of where you are located or what your schedule is, you’ll find friends, community, and proven education at Socrates Trading.Tyler has developed advanced knowledge in every area of trading and is considered an expert in the area of market volatility patterns & small-cap stocks. Tyler has started Socrates Trading because of his passion not only for trading but to teach others the art of trading and to build a community of like-minded people that share the same goals and values.Show less
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Platform: Udemy
Video: 3h 32m
Language: English
Next start: On Demand

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