Wash Sale When All Lots Sold at Once?

Home Fairmark Forum Taxation of Investments Wash Sale When All Lots Sold at Once?

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  • #7711
    walter1
    Participant

    I bought a call option on 6/13 and bought a another one of the same on 6/19. The price continued to drop and I sold both for losses on 6/27 in one sale with one fill.
    My 1099b lists the dates aquired as “Various”.
    Some software showed it as a wash sale.
    Options don’t seem to have CUSIP numbers and brokers might not be compelled to report option wash sales.
    The “Wash Sale Matching Rules” section “General Rule” implies generating wash sales when multiple lots are sold at once.
    But I don’t think this is a wash sale because the sale ocurred as a single fill, no shares were held or acquired after the sale, and I can’t see how the lots could be replacement shares.
    Perhaps it’s not technically wrong to report it a as a wash sale, but it seems frivolous, and doing so creates reporting complexities that don’t seem justifiable.

    While perhaps not granting a license to hide a wash sale, page 5 of the form 8949 instructions agree with the 1099b:

    Stock acquired on various dates. If you
    sold a block of stock (or similar property)
    that you acquired through several different
    purchases, you may report the sale on one
    row and enter “VARIOUS” in column (b).

    Since I don’t think it is a wash sale, I’m inclined to just add it to the total on Schedule D line 1a. This is supported on page D-11 of the schedule D instructions and on page 3 of the form 8949 instructions.

    #7712
    kaneohe
    Participant

    Wondering if the broker reporting will also have an influence……..if they report it as a wash sale, won’t your reporting need to be consistent
    with theirs? I know that the end result whether wash sale or not is the same if you end up selling all the shares you bought within +/- 30 days
    of sale.

    #7713
    walter1
    Participant

    The broker reported it as not a wash sale. “Various” as date acquired on the 1099b. That’s why I don’t want to report it as a wash sale if I don’t need to.

    #7714
    kaneohe
    Participant

    Lucky you! I’d be inclined to do the same. I have to wait till next Feb.to find out if my broker is reporting a similar thing (w/ funds, not calls) as a wash sale……..which I fear they are going to do.

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