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I had a chance to look around at this and the whole CA/NV thing while my wife was entering the charitable deductions (and apparently nodding off). In Turbo Tax there was a choice of Straddles instead of Stocks, but I didn’t use it. It looks like I need to go back and reenter my data for those spreads under the straddle section.

In short, it sounds like this is so that they avoid the wash rule, so that it considers the whole straddle as one unit. I had forgotten that spreads are a subset of straddles (like squares are a subset of rectangles).

Some info on this is available in a fairmark thread at,28654,28708#msg-28708

For those not using a software program, form 6781 is the one to take a look at, and page 58 of Pub 550 is said to give more info. I'll take a look at that to see if there's anything special to do when you hold the spread all the way through expiration.

In other news, it looks like Turbo Tax is just screwing with me so far on the estimate I owe to CA. It should fix itself when I get to the state section, and if not I’ll manually fix it, since CA pub 1031 and the 540 non-resident booklet clearly state that stock sales has a source of where you are a resident at the time of the sale...though they make you hunt a little to find that info.

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