For many years, for IRS purposes, I'm a "trader in stocks and stock options," but not in futures. The implication is that for stocks & stock options, at end-of-year, those stock/option positions are mark-to-market. Thus, all unrealized P/L at end-of-year, are considered realized at the Dec 31st closing price.
Re stocks/options, that prevents any long-term gain, unless specifically noted in advance (probably via a separate account,) but on the plus side, it means wash sales do not apply.
With my accountant, we have adjusted end-of-year tax forms, because IB broker removes all wash sales. That is a nuisance, but not a major problem.
However, in daily trading the broker implementing wash sales, is a big issue.
For instance, assume recently I shorted a $40 stock, but immediately IB reflected the position as short at $33 -- thus showing an immediate $ 700 loss @ 100 shares.
[Note: this does not impact total account equity; only the Unrealized on this new position.}
They did that because I had traded that stock the prior days, at the $33 price range, and IB removed all the wash sales, leaving a position at $33.
As far as I can see, IB does not have an option to eliminate wash sales in daily trading. I understand, because otherwise it could reflect an inaccurate P/L per IRS rules.
Anybody know how to handle above? Any broker that has ability to eliminate wash sales in daily activity?
Thanks.
Re stocks/options, that prevents any long-term gain, unless specifically noted in advance (probably via a separate account,) but on the plus side, it means wash sales do not apply.
With my accountant, we have adjusted end-of-year tax forms, because IB broker removes all wash sales. That is a nuisance, but not a major problem.
However, in daily trading the broker implementing wash sales, is a big issue.
For instance, assume recently I shorted a $40 stock, but immediately IB reflected the position as short at $33 -- thus showing an immediate $ 700 loss @ 100 shares.
[Note: this does not impact total account equity; only the Unrealized on this new position.}
They did that because I had traded that stock the prior days, at the $33 price range, and IB removed all the wash sales, leaving a position at $33.
As far as I can see, IB does not have an option to eliminate wash sales in daily trading. I understand, because otherwise it could reflect an inaccurate P/L per IRS rules.
Anybody know how to handle above? Any broker that has ability to eliminate wash sales in daily activity?
Thanks.
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