Hello everyone,
I’m looking for some clarity on the tax treatment of put options contracts for BTC in Japan and hope someone here can help. Specifically, I’d like to understand when the taxable event occurs. Here’s my current understanding, and I’d appreciate any corrections or confirmations:
**1. Buying a Put Option**: From what I gather, purchasing a put option is not considered a taxable event.
2. **Selling the Put Option**: If I sell the put option before it expires, the difference between the purchase price (premium) and the sale price is treated as a capital gain or loss.
3. **Letting the Put Option Expire**: If the put option expires worthless, no taxable event occurs.
4. **Exercising the Put Option**: When exercising the put option, the BTC is sold at the strike price resulting in a taxable event.
As additional information, I am asking this because I wonder if the following steps would work:
1. Buy a Put Option to sell BTC in 3 months
2. Move to a country where I don’t have to pay (or only have to pay low) taxes on cryptocurrency gains
3. Exercise the Put Option once settled in that country
by qwerty_Player_One