Question
Does GainsKeeper adjust the cost for wash sales on options?
Answer
GainsKeeper will detect and adjust cost for wash sales across options of the same symbol. If you sell a call option for a loss, and then purchase the same call option within the 61-day wash sale window, GainsKeeper will defer the loss and add it to the basis of the option. The same scenario applies for the sale and purchase of put options.
GainsKeeper calculates wash sales within individual securities traded long or short. GainsKeeper does not adjust for wash sales across long and short holdings. Nor will GainsKeeper generate a wash sale if you sell an equity at a loss, and then open a call option for the same equity within the wash sale window. Please consult your tax advisor if you want wash sale analysis across long and short transactions or if you wish to identify significantly identical securities.