The answer to your issue is not clear. The IRS has stated it believes a stock sold by one spouse at a loss and purchased within the restricted time period by the other spouse is a wash sale. However, different courts have reached different conclusions especially when the spouses had separate accounts and acted independently.
were the sale and purchase made in different accounts and did each of you act independently?
if yes, you may want to take the position there was no wash sale. to protect yourselves, you may want to add a statement to your return describing what took place and your reason for treating the transaction the way you did.
it you report it as a wash sale it is also unclear as to whether or not the non-deductible loss can be added to your husband's basis. If his income is not reported for US tax purposes, which I assume is the case, then the basis adjustment issue is moot. There is a case where a taxpayer sold securities at a loss and immediately repurchased them in an IRA. The court disallowed the loss and would not allow the the basis of the IRA to be increased for the loss.
