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Author Topic:   Incorrect classification of Cap Gains for Options
Nancy Ward
Member 		posted 09-17-2003 11:56 AM     Click Here to See the Profile for Nancy Ward   Click Here to Email Nancy Ward     Edit/Delete Message
When I assign a Sold Call Option, the Cap Gain should be long-term if the underlying stock is long-term. I undertand that I can have the gain be long-term by changing the Purchase Date for the Option to be the same Purchase Date as the underlying stock. But on the Transaction Entry screen, do I need to specify Capital Gains-Long Term (it seems to have no effect on the Sched D report whether I use Capital Gains Long-Term or Capital Gains Short-Term)?

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fni_support
Moderator 		posted 09-18-2003 06:14 PM     Click Here to See the Profile for fni_support     Edit/Delete Message
Hello Nancy, thank you for posting your question.

In terms of the Schedule D, the report shows a sale having short-term or long-term gains based on the Date Acquired and Date Sold of the asset on the A/L screen. Selecting Long-Term or Short-Term capital gains accounts in the Transaction Entry screen does not have any affect on this. Let me know if this doesn’t answer your question.

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George
Financial Navigator Int’l

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