Wash sale rule

[user17524196967]

Is wash sale rule apply on SPX Nd NDX trading

[dev145]

Hello user17524196967,

Since SDX and NDX (Broad based Index) falls under Section 1256 contracts, wash sale rule do not apply to them. Section 1256 contracts are subject to "mark-to-market" rules, meaning that any gains or losses are treated as if the positions were sold at the end of the year, even if they were not. The wash sale rule specifically exempts losses from Section 1256 contracts. 

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TurboTax Expert

[rschule]

Hi there:

A wash sale occurs when you sell a security at a loss and repurchase the same or substantially identical security within 30 days. I think you know this so a better question might be  what constitute a security? US News offers a good definition of securities. Please see link below

Security Defined 

1256 contracts defined 

Hope this is helpful.

[vithalanin]

Wash Sale rule applies when you sell a security at a loss and buy it again within 30 days of the sale date. When you do this you cannot deduct the loss of the original sale. Here is an example of the wash sale rule IRS: Wash Sale Rule 
SPX Nd NDX trading are option trading and fall under IRS Section 1256. Section 1256 contracts are exempt from wash sale rule. The qualifying contracts are non-equity options and options on broad-based stock indexes such as SPX