Joined: 28 Mar 2011
Online Status: Offline Posts: 1
Posted: 28 Mar 2011 at 21:53 | IP Logged
I sold an equity stock at loss and 20 days later, I want to repurchase the option on the same stock. Does the wash sale rule apply and therefore the loss can not be deducted when filing my tax?
Joined: 11 Jan 2011
Online Status: Offline Posts: 12
Posted: 29 Mar 2011 at 00:52 | IP Logged
A wash sale occurs if you repurchase the substantially identical securities when you sold at a loss before or after the sale within 30 days. This means that the loss on the sale will be disallowed if the options are acquired within 30 days of the sale, but the disallowed loss will be added to the cost basis of your next buy.
__________________ TradeMax - Help prepare tax and figure out wash sale..
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