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Wash Sale on options nonsense.

post #1 of 8
1/5/12 at 8:22pm
Thread Starter 

ok just to make this clear... THERE IS NO WASH SALE ON OPTIONS AS THEY CLOSE THE NEXT DAY. (on cash accounts) Margin takes until EOY but the security is 30days.

 

so how come i have wash adjustments in my report for last year.. let alone the totals are off. Im missing like 40K from the totals.

 

So what do i do? Call gains keeper and bitch them out or what? 

I dont have records for all my trades last year, there were like a billion.

 

Well i do know TOS clients are suppose to recieve one report from TOS and another from TDA.. so perhaps it will total up right.

 

at the EOY the TOS totals in the platform were correct.. the reports are not.


Edited by mjoke - 1/9/12 at 1:50pm
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post #2 of 8
1/5/12 at 9:26pm

Here's what I just read. I'm sure you know what you're talking about but I highlighted the last sentence.

 

"The wash sale rule can apply even if you don't acquire stock. If you enter into a contract or option to acquire stock, that's enough to make the wash sale rule apply. Your sale of stock can also be a wash sale if, within the wash sale period, you sell a put option on the same stock that's "deep in the money." And you can have a wash sale from selling options at a loss, too.

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post #3 of 8
1/5/12 at 9:37pm
Thread Starter 

no no that wrong.. i have had extensive discussions with CPA to the broker about this.. and gains keeper dept.

They state wash sales do not apply to options..  HOWEVER in your instance i can see perhaps it does if they are beyond the 30 days..

 

but then it still doesnt make sense as you cannot go back and get the gains or losses from prior contacts as they are gone, void, not here anymore.. Where the stock is always here.

 

A wash sale is selling a security a stock  within the 30 day window.. if the option expires prior to that ... it doesnt make sense and is a oversight basically.

 

They better not wash me.. as a sale on a options.. at a loss.. is what it is .. a loss... not a wash.

I can trade the same options same strike and same everything a billion times and shouldnt matter.

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post #4 of 8
1/5/12 at 9:46pm

Here's a link to that read: http://www.fairmark.com/capgain/wash/ws101.htm

 

Like you said everything was good until I read that last sentence and I didn't pursue it. Take a look. thumbup.gif

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post #5 of 8
1/5/12 at 9:52pm
Thread Starter 

no no .. i dont wanna read anything lol.. everyone says something different.

 

Ill take what the gains keeper department says..  since they do the reports lol.

 

im just saying stock sure it applies.. options if you think about it and the 30 day window vs the expiration its irrelevant in a wash adjustment.

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post #6 of 8
1/5/12 at 11:49pm

LOL. I was just curious so I did some looking around. How well I know what you're saying about not wanting to read. Wears a person out.

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post #7 of 8
1/9/12 at 10:46am

Wash Sales for options are in the grayest area possible... that's the IRS tax code for you.

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post #8 of 8
1/9/12 at 1:34pm
Thread Starter 

"" The wash sales that you encountered on the options will all be canceled out since the options expired before the end of the year. Gainskeeper must still adjust for wash sales because the wash sale requirements are met. What this means is that while you are seeing losses canceled out, if you look at the basis for the next option opened you will notice those losses are taken into consideration in that basis.""

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