In Capitally, when a long call option gets exercised automatically, a lot is closed with a realized loss (negative Realized Return) and a new one is open with 100 shares of the underlying stock with the cost basis set at the strike price. In the US, such a transaction does not cause a realized loss. The new position cost basis is the strike price plus premium paid for the call.
I have many long calls that got exercised in January and Capitally shows capital losses for those calls. As I like to keep track of realized returns as accurately as possible for tax purposes, what would be the work around to address this issue?
This is currently handled by the Tax preset, as it depends on the tax jurisdiction. The option’s expenses should be forwarded to the newly opened position.
I you have taxes set up for US, you should see that in the taxes due report (although only once the stock position is closed).
It will also be reflected in your “potential tax” and “harvestable tax” metrics.
My tax preset for this account is set to “Investment Account (US)” It’s not clear to me that the expense had been forwarded to the newly opened position, as the “Unrealized Returns” for the new stock position seem to be calculated based on the strike price.
I’ll send you a screenshot of the lots and you can tell me if what I see is what you would expect.