Let's say I have two trading accounts, each with $25K, and one is a margin taxable account and the other is an IRA (with permission to trade futures).
I hold and occasionally trade long ES (S&P mini-futures) in the taxable account and I hold and occasionally trade short NQ (mini Nasdaq 100 futures) in the IRA. I often open and close trades on the same day in each account. To wit, I may long ES and sell it on Monday and short NQ and buy it back on the same day in the other account.
Let's say at year's end I have a $10K capital loss in the taxable account and a capital gain of 10K in the IRA. (Roughly on each account, to make things simple, and let's assume a rough correlation between ES and NQ.)
Now, I can't see a wash sale issue here, so I get the loss deducted, up to $3,000, right? NQ is not ES.
No issues with the gain in the IRA, I assume, either.
So, effectively, I have moved, roughly, $10,000 from a taxable account into an IRA, right? And I get a $3K deduction and $7K in deductions rolled over, right?
This is kosher?
If you wonder what would happen is the opposite happened, and I had a taxable gain and a non-taxable loss, my answer might be that that risk can be lessened with the purchase of a call option on the short NQ. Not a perfect hedge, but a hedge.
So, what am I doing wrong or what would incur the wrath of the IRS?