Tax Question: Stock options expire worthless, capital loss or income loss?

[bbi1]

Are options that expire worthless a capital loss or income loss?

Say you buy some stock options & they expire worthless the same financial year that it was bought, will this be a capital loss or income loss? Eg. I buy GLNO & they expire worthless a few months later.

 

[So_Cynical]

i would treat it as a capital loss.

 

[wayneL]

It depends if you are classed as a trader for tax purposes.

If so, income loss. If not probably capital loss.

 

[bbi1]

Ok, so if classified as a trader it's an income loss. If not then it's a capital loss.