How is income and losses from Options Trading (Covered Calls) taxed?

C

Coytow

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I've looked online, through old posts and revenue documents but I can't find a clear answer to these 2 questions.

If I sell a 30 day covered call and receive €100 premium for selling the option, is that premium taxed as income or a capital gain?

If I then buy back that option after 15 days for $50, meaning the net I end up receiving on that Covered Call is $50, is my final taxable amount €50? I assume it is deductible but revenue sometimes has some strange rule on investment income.
 
jpd said:
If you are trading regularly, then it's income
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Thanks. And is it correct that the taxable income is the net received? E.g. the initial premium minus the premium returned to buy the call back early.
torblednam said:
Google the badges of trade
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Thanks, I didn't know the laws here were so open to interpretation! I'm in the process of moving back from abroad. It is hard to interpret this as selling a CC is selling an option, usually without any asset being exchanged. If it was considered income, do you know if this is based on the final/ net income received for the CC (e.g. the cost to buyback the option can removed from the original income)?
 
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