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How Is a Section 1256 Loss Treated If the Position Is Re-Established Immediately?

The loss is realized and subject to 60/40; the wash sale rule does not apply, so the loss is deductible immediately.
Greeks.Live21.11.25

How Is a Section 1256 Loss Treated If the Position Is Re-Established Immediately?

The loss is realized immediately and is subject to the 60/40 tax treatment. Since the wash sale rule does not apply, the loss is not disallowed, and the cost basis of the re-established position is its new purchase price.

This allows for tax-loss harvesting without interruption of the market position.

Is There a Similar Rule to the Wash Sale for Section 1256 Contracts?
Does the Wash Sale Rule Apply to Crypto Derivatives?
How Does the Wash Sale Rule Apply to Different Classes of Stock (E.g. a Vs B)?
How Does the Wash Sale Rule Differ for Stocks versus Section 1256 Contracts?

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