How do I report stock options purchased through a brokerage account?
You should report the options on Schedule A even if they are underwater. The name of the company and the categories of value and income should be reported. For underwater options, report the following information instead of a category of value: number of shares; strike price; and date on which the options will expire. Unlike stock options acquired through employment, these stock options are not required to be reported on Schedule C, Part II (Agreements and Arrangements).
