<p>Yeah most hft trading places are < 10 miles away - many in New Jersey, a most unappealing state.</p>
<p>dstark: I’m trying to figure out why I have a $4274 wash sale loss disallowed when I didn’t sell and buy back the stock in less than 30 days. I think a sold puts, got assigned and sold the stock 2 months later. Do you have any idea how this would happen?</p>
<p>Are you with schwab?</p>
<p>Did you get assigned within 1 month of the sale?</p>
<p>yes and I’m totally confused with what they sent me. I’m going to the accountant tomorrow and he isn’t that familiar with options. I’m going to have to talk to Schwab on Monday. They even have something as disallowed with all these wash sale things, yet there is one case where the “adjusted” cost basis is exactly what I have anyways without any wash sale stuff.</p>
<p>The numbers from Schwab are wrong. </p>
<p>I have already talked to them…</p>
<p>I have wash sales when I made money.</p>
<p>One…are stock sales proceeds correect?</p>
<p>Two…schwab did not consistently get the cost of the purchase correct.</p>
<p>The company did not get the purchase costs correct. They did not subtract the cost of the put premiums from the assigned price.</p>
<p>Well that’s just great - I’ve got ~$20k of wash sale losses disallowed. I don’t need this - not after spending yesterday morning in the er with an arrythmia!</p>
<p>Doct…sorry to read about your arrythmia…</p>
<p>I spent 8 hours recalculating by hand…</p>
<p>Now Schwab is going to do it by hand…</p>
<p>I don’t want to see any bs wash sales.</p>
<p>I am going to give you can example of what I am talking about leaving commissions out…</p>
<p>I sell 10 nov10 puts for 4.</p>
<p>They get assigned…</p>
<p>Schwab says that is 1,000 shares at a cost of 10… (the strike price)…
So my cost is 10,000.</p>
<p>I sell 1,000 shares of stock for 7.</p>
<p>I receive 7,000.</p>
<p>Cost 10,000… Sale price…7,000…
Schwab says the loss is 3,000…</p>
<p>Then in addition…there might be wash sale bs in the 1099.</p>
<p>Reality…selling the nov 10 puts at 4 means I paid $6 for the stock…sold it at $7… Making the profit…1,000.</p>
<p>Schwab is so off…there is no loss…</p>
<p>I had an irregular heartbeat before…and this episode could have set me off.</p>
<p>I told Schwab there is no way I can use their numbers.</p>
<p>afib? I have severe side effects. I think I’ll start a discussion here on this.</p>
<p>Ok…</p>
<p>Yes to afib…</p>
<p>If I sell a put, get assigned, sell the stock 2 months later at a loss and in the meantime sell a put in the same stock, and get assigned one week after the first sale, can I take a loss on the first sale?</p>
<p>
I write software for a very large software company. I’m in the Boston area.</p>
<p>Doct…no…you probably can’t…</p>
<p>You can’t buy…sell and then buy within a month of the sale…</p>
<p>And selling puts are considered buys…</p>
<p>Did you ever sell the stock after the second put sale?</p>
<p>[Wash</a> Sales 101](<a href=“http://www.fairmark.com/capgain/wash/ws101.htm]Wash”>http://www.fairmark.com/capgain/wash/ws101.htm)</p>
<p>I’m trying to figure it out. It looks like I bought all of them on the same date, and sold them at different times. My records aren’t super clear. I keep a trading book and an excel spreadsheet but its time for me to hit the sack and I’m not thinking straight. I probably won’t be able to clear it up until next week. I’ve got to finish my taxes, an irrevocable trust taxes, my daughter’s taxes and my father’s taxes. Fortunately, my father’s are relatively straight forward. Mine aren’t.</p>
<p>This is the kind of problem my trading friend showed me yesterday with Wash Sales at Ameritrade. I thought that some of the stuff that he showed me was wrong but this year, the stuff has to add up on the 1099 with that new total wash sales figure.</p>
<p>Yeah, I never paid attention before because it was never on the 1099.</p>
<p>Doct…file a 6 month extension…</p>
<p>You don’t have to hurt yourself on this…</p>
<p>I always file an extension…</p>
<p>“This is the kind of problem my trading friend showed me yesterday with Wash Sales at Ameritrade. I thought that some of the stuff that he showed me was wrong but this year, the stuff has to add up on the 1099 with that new total wash sales figure.”</p>
<p>BCEagle91…</p>
<p>Did your friend trade options?</p>
<p>Were the numbers for wash sales and the 1099 correct?</p>
<p>He doesn’t trade options but there’s a $10K difference between the total and what he thinks happened. Basically his balance was the same from the start of the year to the end of the year but the way it is now, he’ll have to pay taxes on $10K of income.</p>
<p>This sort of thing is why I went with TurboTax this year. I want the software to take care of as much of the tax headache as possible which includes autoimporting stuff from brokerages. He got the free version of TurboTax which doesn’t do stocks - I offered to let him use my TurboTax installation to figure out his stock stuff. BTW, he’s fairly well off and can afford TurboTax - he’s just cheap. Like me. Of course I have my limits on being cheap.</p>
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<p>I found one that looked incorrect but it was hard to tell because he had so many transactions. Easiest thing to do would be to suck everything into TurboTax and let it figure it out.</p>
<p>I see…</p>
<p>So 10,000 in losses are probably wash sale losses and he must have carried positions into 2012…</p>
<p>Those losses, if I am right, should be added to the positions he carried
into 2012…</p>
<p>And if he closes those trades out in 2012… </p>
<p>He should be able to deduct the 10,000 this year…either from profits…or larger losses…</p>
<p>Wash sales on short term trading should be allowed…
When somebody is trying to convert a long term loss into a short term loss…that should not be allowed…</p>
<p>What is going on now is a mess…</p>