Yes, you are correct. You should see no gain or loss from the wash sale because the basis has been increased until there is no longer a wash sale situation.
Yes, the other two summarized sales would be reported as you indicate and the Form 8949 is not required if there is no adjustment (change) in the totals reported on your 1099-B.
Wash Sale Rule Defined:
- A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar.
- It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days.
- The wash-sale rule prevents taxpayers from deducting a capital loss on the sale against the capital gain.
Affect on Cost Basis:
- The loss that occurs on a wash sale is added to the cost basis of the shares purchased that created the wash sale.
- When all shares are sold and there is no repurchase, that increased cost basis will be used in full and used to determine gain or loss.
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