Skip to main content

Does the Wash Sale Rule Apply to a Stock Option on a Foreign Stock?

Yes, the wash sale rule applies to options on foreign stock if the foreign stock is considered a "security" under US tax law. Since the rule applies to "stock or securities," options on foreign stock are subject to the same 61-day window if the loss is realized and a substantially identical option or stock is acquired.

What Is the Primary Tax Benefit of the Wash Sale Rule Not Applying to Section 1256 Contracts?
Does the Wash Sale Rule Apply to Crypto Derivatives?
Can the Wash Sale Rule Be Triggered by Trading Different Strike Prices of the Same Option?
How Does the Wash Sale Rule Differ for Stocks versus Section 1256 Contracts?