Tax Reporting: Equity and Index Options Transactions

Equity options and equity index options are options to buy or sell stock valued by reference to an equity or narrow-based security index.  Proceeds from the sale of equity options, both puts and calls (options that entitle the purchaser to sell or buy equity shares) and equity index options are not required to be reported on Form 1099.   However, proceeds associated with the exercise and assignment of equity options is reportable on Form 1099-B.  Please consult your tax advisor for additional information and guidance in this area.

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.