Wash sale across IRA and taxable accounts

[yatoshura]

I traded some options for the same ticker in my traditional IRA and another individual taxable accounts. There were some gains and some losses within 30 days. I mostly traded option strategies like covered calls, iron condor, put credit spread, call debit spread, etc for the same ticker in each account. 

How are wash sales handle in this scenario? I have losses and gains in both accounts for the same ticker. How do I report these? How should I adjust basis? Can losses offset gains across these accounts?

Appreciate any advice.

[Mike9241 · Accepted solution]

you only look at sales at a loss in your taxable accounts. Then, if you bought substantially identical securities in either your taxable accounts or IRAs, within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date (referred to in this section as the 61-day period) you have a wash sale. This would include entering into a contract or option to acquire the substantially identical security. 

you can have wash sales even if the sale is a short sale.

note: if the wash sale is caused by a transaction in a tax-exempt account, there is no adjustment to basis so in fact the loss is permanently non-deductible.

see the regs.

https://www.law.cornell.edu/cfr/text/26/1.1091-1 

there may also be a question of whether an option on a stock is substantially identical to another option on the same stock if the strike price or expiration date differs.