Here are some examples for a tax guru.... 1. Sold at a loss 500 share of SPY in a taxable account. Bought 2 weeks before, 500 shares of SPY in IRA. 2.Sold at a loss 500 share of SPY in a taxable account. Bought 2 weeks after, 5 at the money call contracts on SPY in IRA. 3.Sold at a loss 500 share of SPY in a taxable account. Bought 2 weeks after, 5 at the money put contracts on SPY in IRA. 4.Sold at a loss 500 share of SPY in a taxable account. Bought large cap mutual fund of comparable position size. My guess is... 1. disallowed 2. disallowed 3. ok 4. maybe? Anybody else want to chime in?
Agree with 1 and 2 With 3 I am not sure why he would BUY puts but if he did, and didn't sell puts on the SPY, that also seems like the answer is correct; it would be allowed. I disagree with the maybe in 4, though. Does this tax guru have a IRC cite?