Wash Sale disallowed

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boater07
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Wash Sale disallowed

Post by boater07 »

My 1099 shows a disallowed wash sale. What is that and how do I report it?
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White Coat Investor
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Re: Wash Sale disallowed

Post by White Coat Investor »

Probably didn't wait 30 days before rebuying something you sold. but you can also get a wash from buying some shares and then selling other shares of the same thing within 30 days.

Basically, you just don't report the loss you would have otherwise had. I don't think you actually put a wash sale anywhere on your return.
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barnaclebob
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Re: Wash Sale disallowed

Post by barnaclebob »

It should all sort itself out when you put it in your tax software or give your 1099's to your tax person. Its not a big deal aside from taking some of your losses away. I had two small wash sales this year while tax loss harvesting because of a dividend timing issue.
livesoft
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Re: Wash Sale disallowed

Post by livesoft »

Here is an old post with a picture of a 1099-B with a wash sale and a picture of Form 8849 8949 where the wash sale was reported. Form 8849 8949 is part of Form 1040 of your Federal tax return.

viewtopic.php?p=2773041#p2773041
Last edited by livesoft on Tue Jan 24, 2023 4:32 pm, edited 1 time in total.
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tortoise84
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Re: Wash Sale disallowed

Post by tortoise84 »

White Coat Investor wrote: Tue Jan 24, 2023 1:25 pm Basically, you just don't report the loss you would have otherwise had. I don't think you actually put a wash sale anywhere on your return.
That is incorrect. You must report it on Form 8949 with code W in column (f), and the amount of the loss not allowed as an adjustment in column (g) as a positive number.
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Mel Lindauer
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Re: Wash Sale disallowed

Post by Mel Lindauer »

White Coat Investor wrote: Tue Jan 24, 2023 1:25 pm Probably didn't wait 30 days before rebuying something you sold. but you can also get a wash from buying some shares and then selling other shares of the same thing within 30 days.

Basically, you just don't report the loss you would have otherwise had. I don't think you actually put a wash sale anywhere on your return.
And it could also be caused by an automatic reinvestment of a dividend during the 30-day wait period.
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boater07
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Re: Wash Sale disallowed

Post by boater07 »

[quote="ote]

And it could also be caused by an automatic reinvestment of a dividend during the 30-day wait period.
[/quote]

I'm the OP and that is apparently what happened to me. The replys have gotten too complicated for me.
So-do I just disregard the wash sale and simply report the difference between cost basis and proceeds?
livesoft
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Re: Wash Sale disallowed

Post by livesoft »

boater07 wrote: Tue Jan 24, 2023 6:36 pmSo-do I just disregard the wash sale and simply report the difference between cost basis and proceeds?
Of course not. You import your 1099-B into your tax-prep software and tell us what shows up on your Form 8949 that it creates.
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AnEngineer
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Re: Wash Sale disallowed

Post by AnEngineer »

boater07 wrote: Tue Jan 24, 2023 6:36 pm So-do I just disregard the wash sale and simply report the difference between cost basis and proceeds?
No, you should follow the rules. How do you prepare your taxes?
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White Coat Investor
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Re: Wash Sale disallowed

Post by White Coat Investor »

tortoise84 wrote: Tue Jan 24, 2023 3:02 pm
White Coat Investor wrote: Tue Jan 24, 2023 1:25 pm Basically, you just don't report the loss you would have otherwise had. I don't think you actually put a wash sale anywhere on your return.
That is incorrect. You must report it on Form 8949 with code W in column (f), and the amount of the loss not allowed as an adjustment in column (g) as a positive number.
Thanks for the correction.
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Re: Wash Sale disallowed

Post by White Coat Investor »

livesoft wrote: Tue Jan 24, 2023 6:38 pm
boater07 wrote: Tue Jan 24, 2023 6:36 pmSo-do I just disregard the wash sale and simply report the difference between cost basis and proceeds?
Of course not. You import your 1099-B into your tax-prep software and tell us what shows up on your Form 8949 that it creates.
Exactly.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
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