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Dealer Equity Option
A dealer equity option is any equity option listed on a qualified board of exchange, that is bought or granted by an options dealer (any person registered with an appropriate national securities exchange as a market maker or specialist in listed options). The dealer should be registered with the qualified board of exchange where the option is listed. Under U.S. tax law, a dealer equity option qualifies as a 1256 Contract, and benefits from several tax advantages. See also * 1256 Contract A 1256 Contract, as defined in section 1256 of the U.S. Internal Revenue Code, is any regulated futures contracts, foreign currency contracts, non- equity options (broad-based stock index options (including cash-settled ones), debt options, commod ... References United States federal income tax Options (finance) {{US-law-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Equity (finance)
In finance, equity is ownership of assets that may have debts or other liabilities attached to them. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets. For example, if someone owns a car worth $24,000 and owes $10,000 on the loan used to buy the car, the difference of $14,000 is equity. Equity can apply to a single asset, such as a car or house, or to an entire business. A business that needs to start up or expand its operations can sell its equity in order to raise cash that does not have to be repaid on a set schedule. In government finance or other non-profit settings, equity is known as "net position" or "net assets". Origins The term "equity" describes this type of ownership in English because it was regulated through the system of equity law that developed in England during the Late Middle Ages to meet the growing demands of commercial activity. While the older common law courts dealt with questions of property title, eq ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Option (finance)
In finance, an option is a contract which conveys to its owner, the ''holder'', the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or financial instrument, instrument at a specified strike price on or before a specified expiration (options), date, depending on the Option style, style of the option. Options are typically acquired by purchase, as a form of compensation, or as part of a complex financial transaction. Thus, they are also a form of asset and have a Valuation of options, valuation that may depend on a complex relationship between underlying asset price, time until expiration, market volatility, the risk-free rate of interest, and the strike price of the option. Options may be traded between private parties in ''Over-the-counter (finance), over-the-counter'' (OTC) transactions, or they may be exchange-traded in live, public markets in the form of standardized contracts. Definition and application An option is a contract that all ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Internal Revenue Service
The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law. It is an agency of the Department of the Treasury and led by the Commissioner of Internal Revenue, who is appointed to a five-year term by the President of the United States. The duties of the IRS include providing tax assistance to taxpayers; pursuing and resolving instances of erroneous or fraudulent tax filings; and overseeing various benefits programs, including the Affordable Care Act. The IRS originates from the Commissioner of Internal Revenue, a federal office created in 1862 to assess the nation's first income tax to fund the American Civil War. The temporary measure provided over a fifth of the Union's war expenses before being allowed to expire a decade later. In 1913, the Sixteenth Amendment to the U.S. Consti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cornell Law School
Cornell Law School is the law school of Cornell University, a private Ivy League university in Ithaca, New York. One of the five Ivy League law schools, it offers four law degree programs, JD, LLM, MSLS and JSD, along with several dual-degree programs in conjunction with other professional schools at the university. Established in 1887 as Cornell's Department of Law, the school today is one of the smallest top-tier JD-conferring institutions in the country, with around 200 students graduating each year. Cornell Law School has consistently ranked within the top tier of American legal institutions, known as the T14. Cornell Law alumni include business executive and philanthropist Myron Charles Taylor, namesake of the law school building, along with U.S. Secretaries of State Edmund Muskie and William P. Rogers, U.S. Secretary of Housing and Urban Development Samuel Pierce, the first female President of Taiwan, Tsai Ing-wen, federal judge and first female editor-in-chief ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1256 Contract
A 1256 Contract, as defined in section 1256 of the U.S. Internal Revenue Code, is any regulated futures contracts, foreign currency contracts, non- equity options (broad-based stock index options (including cash-settled ones), debt options, commodity futures options, and currency options), dealer equity options, and any dealer security futures contracts. For U.S. Federal income tax purposes, mark-to-market accounting is used for each 1256 contract as of the end of each tax year, and such contracts are treated as sold for its fair market value on the last business day of such taxable year (i.e., as "closed"). The Internal Revenue Service (IRS) is not clear on whether QQQ, DIA and SPY options should be treated as section 1256 contracts. On one hand, these are seen as equity options, not within the definition of a 1256 Contract, but others consider them as non-equity option and meeting the definition of a "broad-based" index option. Instead, the IRS grants penalty relief if a bro ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United States Federal Income Tax
Income taxes in the United States are imposed by the federal government, and most states. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions. Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. Partnerships are not taxed (with some exceptions in the case of Federal income taxation), but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within the jurisdiction. Several types of credits reduce tax, and some types of credits may exceed tax before credits. An alternative tax applies at the federal and some state levels. In the United States, the term "payroll tax" usually refers to FICA taxes that are paid to fund Social Security and Medicare, while "income tax" ref ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
