For example, if I were to buy 100 shares in APPL today and sell a covered call option with an expiration year of 2022, would the premium that I receive be realized upon sale or when the option expires or is bought back?
I'm asking this question purely to understand how I would go about reporting my sale on my tax return. If the premium is considered realized gain at the time of sale, then I'm guessing I would need to report it on my 2021 tax return. However, if it's considered realized at the time of expiration, then I'm guessing it would be reported on my 2022 tax return.
Side note: Question pertaining to tax policy in the U.S.