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Selling stocks and option within 30 days of each other, should I include the cost basis of the stock loss in the option sale?
So on December 10, 2019 I bought 10 stock ABC for 1,500 and December 20, 2019 I sold 10 of stock ABC for $500 with a wash sale loss of $1000, and then on December 25, 2019 I bought 1 option of stock ABC for $900. I sold the option for $950 on January 20, 2020, does that mean I need to include my wash sale in the profit/loss calculation for ABC option ? If yes, my profit of $50 will become loss since $50-1000 = -$950. If on January 25, 2020 I bought back 10 ABC stock for $750, and sold it on April 1, 2020 for $900, should I include the wash sale of -$950 from the profit so now my loss is $150-$950 = $800?
May 15, 2021
1:36 PM