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Options and Wash Sale
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User asks how to handle a wash sale tax situation involving a net loss on an options spread leg.
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I had a first ever wash sale last Friday and I am not sure what to do about it.
It was a leg of a spread. I first lost $30 on that leg and then made $10 back.
I haven't traded this leg or this UL after or before this event.
Suppose, I don't trade the UL or its options in the next 30 days, how should I handle this when filing taxes next year?
Should I subtract $20 net loss from my other short term gains or should I add $10 gain to the other short gains with $30 becoming a "suspend loss".
If the latter, at what time would I be able write that loss off?
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