Wash Sale Rule for Put Options

[CraigS]

I have a sizeable loss in my Put Option. On Sep 2019, Purchased StockA December2019 Strike Price PriceA put options. Closed them on Dec1,2019 for Loss $5,000 and same day bought additional Put options May2020 Strike Price PriceB (different than priceA). I just realized that I may not have accounted for Wash sale rules IRS rules. Will the loss the tax-deductible?

The other way to understand the question will be :

Put1=(StockA,SP=PriceA December2019) 

Put2=(StockA, SP=PriceB May 2020)

Will Put1 be considered same investment as Put2 for wash-sale rule to kick in

2) If repurchased price is same Strike Price as   PriceA, will the loss still be tax deductible?

[NCperson]

if you purchase the same investment within 30 days of selling that same investment, then the wash rules are in effect (if there was a loss on that sale).   You don't lose the benefit of writing off the loss, it is just deferred until you again sell the asset.  

[CraigS]

Question is if  Put1=(StockA,SP=PriceA December2019) is same investment as Put2=(StockA, SP=PriceB May 2020)?

[Anonymous]

Congress amended the wash sale rule in 1988 so that it applies directly to contracts or options to buy or sell stock or securities. That means you can have a wash sale when you close an option position at a loss, if you establish a replacement position within the wash sale period. The Treasury has yet to issue regulations under this rule, and a host of questions remain unanswered. Foremost among these is the question of when one option is substantially identical to another option.

it would be prudent to contact your broker to see if your transactions will be a wash sale or not.

[fanfare]

Option trades are covered transactions. Your broker must report your adjusted cost basis. If there is a wash sale then your consolidated 1099-B will show that adjustment.

Box A or D transactions with adjustments must be reported in detail on Form 8949 or equivalent.

I suspect in your case it is not a wash since the securities are not identical. I could be wrong. If your broker has Gainskeeper reports you can see the records now.