Do I need to adjust for wash sale if the trade which caused the wash sale was also sold (buying of call stock option for stock which I sold for loss within 30 days) ?

[tabshe17]

1. NVTA stock sell
2. within 30 days, NVTA bought call option
3. In same tax year sold call option from

[JohnB5677]

If you sell a stock at a loss and purchase it or a derivative back within 31 days it will create a wash sale. 

That loss then carries over to the new purchase and is added to the cost basis of the newly purchased stock.  

If you sold the stock or derivative in the same year you should have gotten the benefit of the higher basis.

Your broker should keep track of this, and it should be reflected in the future cost basis for profit/loss purposes

[tabshe17]

Thanks for the response @JohnB5677.

Imagine that wash sale occurred between two different brokers. So my question is, do I need to not report loss in one account and adjust cost basis in another with that loss OR don't do anything, since the net effect will be same (given I am selling them in the same year and they are short term only)?

[JohnB5677 · Accepted solution]

If you had a wash sale transaction that occurred between two brokers I suggest you be cautious. 

If the original sale of shares was not posted as a Wash Sale and you sold the second transaction before the end of the year you don't have to do anything.  It will net to the same number.

If the original sale of shares was posted as a Wash Sale  you will have to confirm that the newly purchased lot includes the loss from the Wash Sale.