Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
<<<As you state, your only risk is that the stock rises substantially during the time that you are out of
the stock.>

Can he buy a call on the stock just before selling to cover this risk? Or is a call considered a
substantially similar asset?>>

As things stand now, the answer would be nope. At least in my opinion. The deduction of a wash sale loss is disallowed if a taxpayer sells stock at a loss, and acquires or enters into an option to acquire substantially identical stock or securities within the 61 day window period.

TMF Taxes
Roy
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.