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My 1099 shows a disallowed wash sale. What is that and how do I report it?

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.

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.

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

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.

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.

[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?

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.

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?

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.

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.