By regular accounts I'm not talking about a 401K or IRA. I'm talking about a Cash account or Margin account the kind that people get when they first sign up for a broker. This is without Trader Tax Status or Mark To Market Accounting.
So the IRS kind of has a fuzzy way of saying "Substantially Identical Security". Options with different strikes or expiration dates wouldn't cause wash sales would they if sold for a loss?
Here is an example: AAPL 9/27/2024 Call $228 Strike, sold for a loss then purchased AAPL 9/27/2024 Put$228 Strike.
Or how about same strike but different expiration date like AAPL 10/25/2024 Call $228 Strike. Or any other strike price.
Options and Wash Sales for regular accounts
byu/Snoo_60933 inoptions
Posted by Snoo_60933
2 Comments
It’s the exact same security/underlying, so it doesn’t matter what the trade parameters are. That’s my understanding of the wash sale rule. The example you gave results in a wash sale.
Talk to your tax professional instead of asking anonymous Reddit posters for tax advice. These Redditors mean well. However, they are not CPAs, Enrolled Agents, tax lawyers or have tax degrees. Thus, their options are based on opinion.
Read this. It is written by a tax professional. [https://greentradertax.com/dont-rely-on-1099-bs-for-wash-sale-loss-adjustments/](https://greentradertax.com/dont-rely-on-1099-bs-for-wash-sale-loss-adjustments/)
(And this is a reason why professionals use mark to market accounting and/or trade Section 1256 contracts.)