ISO's, RSU's, ESPP's and the wash sale rule

Technical topics regarding tax preparation.
#1
daveyjw  
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Joined:
17-Jul-2019 12:43pm
Location:
California
Interested on everyone's opinion on how the wash sale rules effects these transactions: This stems from this article https://mystockoptions.typepad.com/blog/2022/11/selling-stock-at-year-end-to-harvest-losses-beware-the-wash-sale-rule.html

As well as some folks who disagree: https://fairmark.com/forum/topic/monthly-vesting-rsus-sell-to-cover-wash-sale/

1. Company where RSU's vest monthly and are sell-to-cover. Are the small losses from the sell to cover disallowed due to the wash sale rule. Are brokerages tracking this? What do you do in these situations.

2. For ISO's exercised at $1 with a FMV at exercise of 10. Then held and sold in a disqualifying transaction when the FMV is 5 and RSU's are vested within 30 days of that. Do you have to recognize the whole $9 as ordinary compensation? Will companies correctly put this on the W2?
 

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