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Is There a Similar Rule to the Wash Sale for Section 1256 Contracts?

No, the mandatory mark-to-market and 60/40 rules for Section 1256 contracts make the wash sale rule redundant and inapplicable.
Greeks.Live21.11.25

Is There a Similar Rule to the Wash Sale for Section 1256 Contracts?

No, there is no direct equivalent to the wash sale rule for Section 1256 contracts. The 60/40 rule and the mandatory mark-to-market accounting achieve a similar goal of preventing artificial loss harvesting by forcing the recognition of all gains and losses at year-end, which makes the wash sale rule redundant.

What Is the Primary Tax Benefit of the Wash Sale Rule Not Applying to Section 1256 Contracts?
Is There an Election to Avoid Mark-to-Market for Section 1256 Contracts?
How Does the Wash Sale Rule Differ for Stocks versus Section 1256 Contracts?
Does the Wash Sale Rule Apply to Crypto Derivatives?

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