Thoughts on this wash sale scenario

Question

I traded options and believe had several wash sales. Does it matter if they're puts or calls or sell to close or expired? Is it possible they're not wash sales as wash sales are not indicated on my 1099-B? If they are indeed wash sales can you please tell me to which lot I carryover my disallowed losses to?

XYZ

purchased quantity sold gain/loss

1. 6/12 1 6/12 $39

2. various 2 6/19 $-119

3. 6/23 1 6/23 $4

4. 6/24 1 6/24 $9

5. 6/24 1 6/26 $-14

6. 6/29 1 6/30 $15

all sold, never repurchased again.

Would I report line 2 on 8949 as W, then add 1/2 the loss amount to the basis of line 3 and 1/2 to line 4 and report those as B on 8949, then line 5 report as W on 8949 and add that loss to the basis of line 6 and report it's code as B on 8949?

another scenario...

1. 6/5 1 6/10 $91
2. 6/10 1 6/19 $-85
3. 6/11 1 6/19 $-64 all sold, never repurchased again

In this instance even though both line 2 and 3 would be wash sales, since I closed out of the position do I not report line 3 as a wash and add the loss of line 2 to it's basis and report it as B?

Please help...I am running out of time! Thank you for your expertise!

Answer 1

I traded options and believe had several wash sales. Does it matter if they're puts or calls or sell to close or expired?

Individually, it doesn't matter what type of security you traded. It doesn't matter whether it was buy to close or sell to close or the options expired. What may matter is if a loss was realized and if substantially identical securities were traded.

If they are indeed wash sales can you please tell me to which lot I carryover my disallowed losses to?

There's no way to make sense of your situation because you haven't indicated what the positions are. Just listing some dates as well as gains and losses is meaningless.

A wash sale violation occurs you purchase a “substantially identical” security or option within a 60 day window around the date that you REALIZE A LOSS. That's 30 days before and 30 days after the loss.

If you did this, you incurred a wash sale(s) and for tax purposes, the cost basis of the trades must adjusted. If you closed such positions in 2020 and did not acquire replacement shares within 30 days (including January of 2021) then this is much ado about nothing.

A wash sale is only a problem if you carry the adjusted cost position into the new tax year (2021). Here, you cannot deduct the loss in 2020 but you will get to claim it in the year that the position is closed, assuming that there is no new wash sale violation.