Does anyone know how to account for wash sale that attached based on purchasing options where the last transaction was the purchase of an option that expired worthless? The issue is that there is no subsequent sale outside of the 30 days covered by the wash sale rule and, therefore, no transaction to which to apply the higher basis from the disallowed wash sale.

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    This appears to be the same situation as the question you posted as an answer here. If so, you may want to edit your question here and include the additional details you posted there: the fact that your 1099-B is reporting a wash sale that you believe to be an error. – Ben Miller Feb 18 at 12:58
  • Welcome to Money.SE. Please take the tour to see how the site works. The question above is fine, but we'd ask you (a) not to post new questions as answers to existing questions, and please don't double/triple post the same one. – JoeTaxpayer Feb 18 at 14:18

If I follow your question, there was a loss, disallowed via wash sale due to the purchase of an option. The option takes on the loss as an increase to its basis, and when it expires, it's reported. The option transaction adds the loss to its purchase cost and the sale is still zero. That transaction allow the option owner to take the loss.

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