Does the cost basis reporting include equity and index option transactions?

IBKR is required to provide the IRS with cost basis detail on covered securities transactions for U.S. persons via the year-end Form 1099.  U.S. persons, therefore, may not change the cost basis on a transaction executed by IBKR and may only change the cost basis on positions transacted elsewhere and transferred to IBKR under the following circumstances:…

Equity options and equity index options are options to buy or sell stock valued by reference to an equity or narrow-based security index. Proceeds from the sale of equity options, both puts and calls (options that entitle the purchaser to sell or buy equity shares) and equity index options are not required to be reported on Form 1099. However, proceeds associated with the exercise and assignment of equity options is reportable on Form 1099-B. Please consult your tax advisor for additional information and guidance in this area…

The UK and HK stamp taxes are included in the cost basis. However, the transaction taxes are not included in the cost basis.

When charged, stamp duty taxes and transaction taxes are shown in the Activity Statements under the Transaction Fees section. You can…

When reporting your stock options on Form 1099-B you will first need to determine if the stock option has expired or if it was assigned or exercised.

If your stock option has expired it will have a realized profit or loss and will be reported on your 1099.  The realized gain or loss will be calculated using a price of 0 as either the cost basis/proceeds for closing your short/long positions…