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?

Thanks!



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