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Further, the entity you form will be able to trade options, if you wish.
Girish Patel, M.D.
OkieDame wrote:
> Proffittak writes:
> it is illigall to do even what fidelity allows
>
> the irs publication only allows selling covered calls
> if you do more it is TAXABLE INCOME THAT YEAR!!!!!
>
> Not having seen the post to which you are responding, I can only assume you
> are commenting on the use of options in an IRA...i.e., only being able to
> write covered calls.
>
> If that is a correct assumption, I would respectfully disagree. IRA option
> limitations are imposed by brokerage houses...NOT the IRS. There are no rules
> or regulations limiting activity to covered calls...in fact, there ARE a
> handful of brokerages that allow other option actiivity...it is NOT against
> the law,,,certainly not the IRS law. Your comment that any "profit beyond a
> covered call is taxable" is patentedly absurd...the idea of an IRA is
> sheltered income/profit, which, as we all know, is not taxable until withdrawn
> from the IRA.
>
> I don't say these things to be contentious~~ only to set the often-mistaken
> record straight. Quote your rules and regs if you disagree.
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