Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
Rules for puts on an existing position?
Posted by: RichC, February 14, 2017 07:50PM
Two related questions...

1) If you own XYZ stock outright and later buy a put on it, what are the tax effects? Is it a constructive sale? If not, are there still negative tax effects? Does the in/at/out-of-the-moneyness come into play?

2) If there are negative tax effects then what happens if you hold XYZ both in an IRA and in a taxable account and buy the put in the IRA? Is the put only "visible" within the IRA or can purchasing the put in the IRA cause bad tax consequences for the taxable position?

Sorry, only registered users may post in this forum.