Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
wash sale? -- call option expires worthless, then buy shares of underlying stock
Posted by: butters_mcghee, March 13, 2017 01:54AM
Hi all,

In March 2015, I purchased a call option to buy 100 shares of XYZ stock (this purchase was made in a taxable brokerage account). The option expired as worthless (pretty far out of the money) in January 2016.

Also in January 2016, I bought 100 shares of XYZ stock -- 25 in the same taxable account (which I sold later in 2016 for a small gain) and the remainder in an IRA.

Did these stock purchases trigger the wash sale rule? Is (some or all of) the loss incurred on the expired option disallowed?


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