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Returning Member
posted May 15, 2021 1:36:51 PM

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
Level 15
May 15, 2021 5:18:52 PM

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.

Level 2
Jun 24, 2021 3:22:04 PM

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?