For Investment Transactions, provide a one-step method to record Assigned Puts or Calls

WCG3
WCG3 Member ✭✭
in Investments (Windows)
When a Put or Call option is "assigned" the IRS treats the premium on that option as an adjustment to basis of the underlying stock acquired or disposed of as a result of the assignment. Q currently has no way to adjust the basis in such transactions. There should be choice for the user that allows the cash received from sale of the option to offset part of the purchase price of the stock, thereby reducing the basis in one simple transaction.
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  • J Weitzel
    J Weitzel Member ✭
    agree with WCG3
  • a1newman
    a1newman Member ✭✭
    100% agree with this comment. Today the capital gains tax report is wrong as it treats the assigned option as a gain on the assigned short put (or short call) and a loss on the exercised long call (or long put) positions rather than adjusting the basis of the stock. Thus, the option assigned/exercised shows up as a capital gain/loss. Thus, there are 2 errors as the option result shows as a capital g/l and when the stock result shows up in whatever year it happens, it will show with the incorrect basis and incorrect g/l. Can Quicken meet the challenge of getting this right?

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