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posted Apr 12, 2021 11:34:47 PM

If I rolled over one batch of call options into another with a different expiry date, do I need to pay capital gains on the batch that I sold?

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Level 4
Apr 12, 2022 2:40:24 PM

Indeed you do need to pay a Capital Gains tax and it must be reported on your tax return. Hopefully you would have had some sort of loss in the same year that may be used to offset your gains. The reason you must report this is because a "rollover" of a call/put option, is you technically exiting a financial position and entering a new one. Say, your option expires in 1 week, and you rollover to an option that expires in 1 month, that transaction indicates a sale of your old option into a new one. If this did not occur in a TFSA or RRSP, then it must be reported.

 

There isn't very much information on options and their tax treatment, however RBC has a good guideline to go off of here: RBC - Taxation of Options Contracts

And another site incase you want to fact-check: Tax Tips - Tax Treatment of Call and Put Options

 

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