By Catherine Clay, CEO of Livevol No one ever said trading options was simple. Unfortunately, the same is true of tax treatment of options gains or losses. Fortunately (or unfortunately, depending on your point of view), new IRS regulations regarding options trading became effective on January 1, 2014. Starting with options purchased this year, your broker will have to report transactions to the IRS when you close the position, including your cost basis, and your short- or long-term capital gains or losses. Evidently, the provision was in response to a “tax gap” related to incorrect cost-basis information that the U.S….