Options Trading Tutorial

Tax advice for stock options trading account?

I opened a stock options brokerage account to buy and hold options. What i need to know is about the taxing of these. Say i inves (deposit) $1000.00 to open the account and buy $1000.00 worth of stock options and they perform excellent. Say they go up in value 50% each month. And at some pont in the near future i want to WITHDRAW my initial deposit since i earned it back. CAN I WITHDRAW THE INITIAL DEPOSIT AMOUNT WITHOUT IT BEING TAXED? Also-Can a`stock options trading account be taxed quarterly instead of once a year? How can i figure out how much of my investment return i CAN WITHDRAW periodically and what that tax would be or can't i? THANKS

Public Comments

1. It doesn't get taxed based on the withdrawal. It gets taxed based on what profit (capital gains) you made when you sell. If you make money in your acc't, there's a tax on it, even if you don't withdraw it from the acc't or even if you reinvest the money.
2. Taxes are assessed on your gains. The sale of a stock or option determines that a taxable envent has occurred, and the profit is taxed. Except if it is in a tax advantaged account such as an IRA.
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