How to Enter Option Trade Information on a Schedule D

Schedule D is used to report capital gains and losses. Capital gains are the profit you make on your investments. A capital loss is incurred when your investment losses value. You must report stock option trades along with other investments on Schedule D of Form 1040. A Schedule D is a worksheet consisting of six columns. Report each stock option on a separate row.

Step 1

Refer to your brokerage account statement for a description of the stock option. The description must include the company name, type, number of traded options and expiration date.

Step 2

Include the option description in Column A, Part I for short-term trades closed within one year. Options open for more than a year are considered long-term. Report long-term stock option descriptions on Part II.

Step 3

Report the date you purchased the option in Column B. In Column C, write the date the option was traded.

Step 4

Enter the sale price of the option in Column D. In Column E, report the original cost you paid for the option. Remember to subtract commission fees from the sales price and add them to your original cost.

Step 5

Subtract Column E from Column D to determine the gain or loss.

Step 6

State the capital gain or loss on Column F. Place a loss inside brackets to indicate a negative number.

Step 7

Repeat the process for each stock option.


  • For expired options, enter the expiration date in Column C and write "Expired" in Column D.

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