As a general rule, the sale or exchange of an option to buy or sell property results in capital gain or loss if the property subject to the option is (or would be) a capital asset in the hands of the option holder.

Question

Quizplus · Accepted Answer

This is correct according to IRS regulations. If the property subject to the option is (or would be) a capital asset in the hands of the option holder, then the sale or exchange of the option will result in capital gain or loss.

As a General Rule, the Sale or Exchange of an Option