I have a tricky wash sale loss situation and need help, it involves wash sale between deep ITM option and stock.
1. I owned stock SHOP and sold a covered call. But as SHOP stock price increased, I bought back the call when it's deep in the money. This is a loss.
2. In the same time, I bought 100 SHOP stock.
1+ 2 --> becomes a wash sale of $1k.
3. After 30d of the buy action in 2), I sold the 100 SHOP stock at higher price, with 3k gain.
The problem is:
because of the wash sale loss deferral rule, I believe that the actual gain for the whole series should be 3k - 1k = 2k. But the tax form issued by Charles Schwab only noted my disallowed wash sale loss, but not the the adjusted gain. How should I fix this issue, asking Charles Schwab to correct it on 1099, or manual adjust cost basis on Turbotax?
Thanks,
