CPA says my options trading created a wash sale nightmare I didn't know was possible
u/Mouse1701 ·
Reddit — r/options
· March 17, 2026 at 04:34
· ⬆ 5 pts
· 💬 22 comments
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AI Summary
Summary
The primary theme of the discussion is the technical aspects of the wash sale rule, particularly how it applies to options trading, spreads, and across different account types (taxable vs. Roth IRA).
The dominant sentiment is educational and corrective, with users clarifying IRS rules and advising on how to manage or avoid wash sale issues, especially around the end of the year.
There is a notable disagreement on the competence of the CPA mentioned in the original (copied) post, with one user suggesting to "get a new CPA."
Score5
Comments22
▶ Full Post Text
[+15] u/FullMetal373: Wash sales should only apply to same strike/same expiration. I don't believe is IRS rule is super clear here but this is how I understand it. Presumably though if you closed a spread and reopened with the same strike the wash sale would roll off because of the 30 days if you carry into expiry. You can avoid this entirely by just not having positions into December if you're trading the same expiry & strike.
The trade structure does not matter. Each leg is its own asset
The cross account issue is in fact a thing. Basically the idea is to avoid people booking the loss in a taxable and then buying back that asset in a Roth. That would allow people to deduct losses while technically still having the asset. To avoid this, the IRS still counts the wash sale. But it is in fact worse because the wash sale step up in Cost Basis would apply to the Roth amount. But that isn't taxed anyways. So you lose the wash sale amount.
[+10] u/midhknyght: Get a new CPA, he’s wrong.
[+7] u/arrgobon32: > I want to make clear this not my own post but I copied this post from another forum I put this hear so it might be helpful to some that need help and we can all learn and understand thank u
What a strange thing to do.