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Any options on futures as well as equity index options, (like OEX) are
considered 1256 contracts in the IRS code and therefore enjoy the 60/40 tax
treatment. Don't take my word for it, ask a tax advisor that has knowledge
of tax law related to 1256 contracts. Ted Tesser, MS, CPA is on this
list...I'm sure he knows. In fact, in his book "The Serious Investor's Tax
survival guide, pg 261, "An index option, such as an OEX call or put, is
treated as a commodity (futures contract) for tax purposes, not an
equity..."
SH
----- Original Message -----
From: <multitrak@xxxxxxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Friday, July 06, 2001 9:10 AM
Subject: Re: Options - was:Globex2 in home
> Nope. Options are taxed as short term cap gains (taxed at the same rate
as
> ordinary income). Futures still enjoy the benefit of the 60% long term -
> 40% short term cap gains split. The tax disadvantage of options is one
> reason (of many) that I do not trade them.
>
> MT
>
> At 10:51 AM 7/6/01 -0400, Bob Fulks wrote:
>
> >Index-option profits are taxed like utures, I believe.
>
>
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