Hello,
This year is the first time I exercised an option and it seems that there are special rules for that but they are not explained in too much detail
According to the IRS rules when I exercise a call option let's say, I would add the cost to the basis of the stock which is fine but what happens to the option trade ?
Do I just ignore it and not report it anywhere ?
How does the IRS know where this higher amount that I paid for for the stock is coming from ?