On the TurboTax website it says that wash trades that are the exact same fall into awash sale. What if I sell an option that expires this week that’s in the red and I buy an option with expiration for the end of the month. Is that still a wash trade? Does that still mean all my trades will be recalculated as if I still hold all the options equally?
Posted by Falloffthewall
1 Comment
Has to have the same maturity for it to even be remotely close to substantially identical. And even if it had the same maturity, a significantly different strike price would also cause the new option to not be substantially identical.
One additional execution note: I’d likely buy the new option at a second brokerage so that I’m the person making the determination of a wash sale in the first instance (and not letting a brokerage decide whether to report it to the IRS as a wash sale).