amein...."wash transactions"
good question, i have been trying for years to get a definitive answer, including asking the question of the irs if "wash transactions" apply to options.....logic would say no, as it is only a contract, which could go either way, so it is not tangible.
go one step further....say you "buy" a call option, it expires worthless,you have a loss, if you reset the "like kind" buy position(same strike, further expiration), in thirty days, does that constitute a wash sale,precluding the "worthless expiration" short term loss deduction?
let's make it more complex...you sell your common at a loss, expect it to go lower so you short the common or buy a put....wash sale???
the question that applies to options is "like kind"....
different expiration, strike, substantially alters the end result....and if it is considered "like kind"....does the thirty day window apply to the opening or closing date of the position....?????
if anyone knows of any published irs determination letters/rulings on options, it would be much appreciated if they post same..... |
