Hello,
I have a question regarding the wash sale rule. I bought 4 put options to open on 30 July 2021. I sold these put options to close on 16 Aug 2021 at a loss. I am being told by my brokerage that this is a wash sale since these transactions were done within 30 days.
The IRS states:
"Wash Sales
You cannot deduct losses from sales or trades of stock or securities in a wash sale unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities.
A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:
Buy substantially identical stock or securities,
Acquire substantially identical stock or securities in a fully taxable trade,
Acquire a contract or option to buy substantially identical stock or securities, or
Acquire substantially identical stock for your individual retirement arrangement (IRA) or Roth IRA."
To clarify, I did not have any other instances of buying this position +/- 30 days except the position that i initially bought in the first place (4 put options to open on 30 July 2021). This is considered a wash sale? Every option bought and then sold under 30 days at a loss is automatically considered a wash sale?
