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Personal Investments • Re: Leveraged ETF => Stock options: Wash sale?

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No, they won't, if you do purposeful manipulation like confounding a long position with an option position on the same equity they have no way to account for it.
Hmm ... I was not aware of that. Perhaps, because I never do "purposeful manipulations", in the first place. 8-)

Though, it is strange that "they would have no way to account for it" - it seems pretty straightforward to me even for the stock/option mix.
They only track it for the same CUSIP and probably only on a per-account basis. E.g., VTI and VTSAX are the same security but have different CUSIPs. They have no obligation to track a wash sale between these securities.

No broker is going to do any more than the minimum when it comes to taxes. Even if it seems trivial to track, doing so adds liability for no financial gain. Ultimately the tax payer is responsible for their filings; you could argue that the broker can't be held responsible for the wrong information. However, that certainly won't prevent someone from suing them if they ever find themselves on the wrong end of an IRS ruling.

Statistics: Posted by exodusNH — Mon Dec 02, 2024 8:18 am



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