Stephen Cooper

tax time

dumaman said: "DO options fly below uncle sams radar?"

thezster said: "Nothing flies under the IRS radar coverage. Your brokerage firm will be sending a statement of activity and profits to Uncle Sam at the end of the year - just to keep you honest."

Quin said: "[QUOTE=dumaman]DO options fly below uncle sams radar?[/QUOTE]None of the brokers that I have used over the years has ever reported option trades on my 1099. To the best of my knowledge, they are not reported to the IRS at all. However, just because they are not reported does not mean they are not taxable. If you decide to conveniently forget about your options activity, you better hope that you never (as in ever) get audited. Because if you do get audited, I think you will hear the f-word thrown around a lot. And I don't mean the 4 letter f-word. We're talking 5 letter f-word: [B]FRAUD[/B]! As in "[I]go directly to jail, do not pass GO, do not collect $200[/I]" [B]FRAUD[/B]! In other words, I would advise reporting [B]ALL[/B] of your income. In the long run, it is much cheaper to pay the taxes."

thezster said: "And, I just learned something new this week. Thanks Quin. I would like to add though - if he "goes directly to jail" - he will also hear a lot of the 4 letter "F" word.... :-O"

twksk8 said: "What do you all recommend for a first timer with taxes? Any handy guides that help break things down or anything of that sort? I just want to make sure I don't forget or overlook anything."

dumaman said: "i was just asking because my finaicail advisor said he never ever reported his taxes because options can not be dectected by the irs.. so i was following up with that here,, and i agree it is cheaper in the long run too do the right thing then end up on the front pages... not that i would im a poorper lol.. but in the future who knwos right, i might actualy get the hang of all this .. lol:th_dblthumb2:"

Corey said: "well, dumaman, if you are feeling especially 'patriotic', report him. You get a percent of what the IRS collects on what he hasn't reported, I believe. Death and taxes...death and taxes...might as well just accept both, because one day, they will get you! :flipoff:"

dumaman said: "[QUOTE=Corey]well, dumaman, if you are feeling especially 'patriotic', report him. You get a percent of what the IRS collects on what he hasn't reported, I believe. Death and taxes...death and taxes...might as well just accept both, because one day, they will get you! :flipoff:[/QUOTE] nooooo lol,"

drdan said: "Options Xpress gives you a nice printout that I give to my accountant, every year! I would rather pay now than pay later. You get caught and forget about it. Initially they will go back 2 to 3 years and then the last 7 years they will go back on and sometimes farther if they keep finding money."

Darren said: ""Tax Time" - two worst words in the language? :flipoff:"

LongArm said: "[QUOTE=twksk8]What do you all recommend for a first timer with taxes? Any handy guides that help break things down or anything of that sort? I just want to make sure I don't forget or overlook anything.[/QUOTE] This is a good 'un: [url]http://www.fairmark.com[/url]"

thezster said: "[QUOTE=Darren]"Tax Time" - two worst words in the language? :flipoff:[/QUOTE] Single worst word in the language.... Audit :dazed052:"

Hanger said: ""Capital Gains Tax" Its a phrase that goes both ways- I don't like it just because of the %'s...but if I am not paying it, I had a horrible year lol.."

twksk8 said: "[QUOTE=LongArm]This is a good 'un: [url]http://www.fairmark.com[/url][/QUOTE] Thanks, I'll have to check that out later today."