Q: I sold a PUT at a loss. I plan to buy another PUT of the same stock at a different strike price, which expires at a later date. Do I have to wait for at least 30 days to avoid a superficial loss?
5i Research Answer:
Keep in mind we are not tax experts and we have seen different interpretations of this. But the loss would like trigger the superficial loss rule. The CRA looks at Identical Property: The CRA defines identical properties as those that are "the same in all material aspects". While different strike prices change the option's value, they may still be considered identical for tax purposes if they derive value from the same underlying asset and represent the same type of position (e.g., selling one put, buying another).