Skip to main content

What Is the Tax Implication Difference between Physical and Cash Settlement?

Tax implications vary by jurisdiction, but generally, physical settlement may result in a capital gains event only when the acquired asset is later sold. Cash settlement, however, is often a realized gain or loss event upon expiration or exercise, potentially simplifying the immediate tax calculation but triggering it sooner.

How Can a High Expense Ratio Negate the Tax Efficiency Benefits of an ETF?
What Are the Tax Implications of Token Vesting for Team Members?
Does the Early Exercise Feature of American Options Increase or Decrease the Premium, and Why?
Define “Maximum Loss” and “Maximum Gain” for a Short Put Option