dev145
Employee Tax Expert

[Event] Ask the Experts: Investments: Stocks, Crypto, & More

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. 

 

**Please cheer or say thanks by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Regards,
TurboTax Expert