Are same-day ISO sales wash sales?
June 20, 2005
Date: Mon, 06 Jun 2005
I exercised stock options through a brokerage account. The shares were bought and sold on the same day. Were these wash sales?
Date: June 10, 2005
To be a wash sale, shares are sold at a loss and identical shares are purchased during the period starting 30 days before the sale and ending 30 days after the sale. The loss is disallowed and a basis adjustment is made for the replacement shares. There are more serious consequences for incentive stock options that I won’t explain here.
If you can keep other transactions outside of the wash sale “window” most same-day sales shouldn’t be wash sales.