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amydeh2018
Returning Member

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?

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2 Replies

Selling stocks and option within 30 days of each other, should I include the cost basis of the stock loss in the option sale?

Since options and stocks are covered transactions, your broker is required to track your wash sales and report it on your consolidated 1099-B.

Report the same info on your tax return.

Selling stocks and option within 30 days of each other, should I include the cost basis of the stock loss in the option sale?

Hello, in 2020 i did some stocks trading. I got forms 1099-B from broker.. it shows -negative number.  where to put this if I am filing my personal taxes soon for 2020?  Also, i see 1099-Div form (has $0) and 1099 miss. has $0 too.  help.. do i need to put these in to my taxes?

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