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Get your taxes done using TurboTax
TD should have added any disallowed loss due to a wash sale to the tax basis of the transaction with the substantially identical securities (SIS) that caused the wash. sale. Then when you sold them without creating another wash sale the loss would have been included and you would thus have deducted the loss on your return. Repeated wash sales would result in repeatedly adding the prior disallowed loss and current disallowed loss to the tax basis of the SIS
example sell for 1000 cost is 1100 wash sale on purchase of SIS for 1200 creates a tax basis of 1300 (1200 paid + 100 wash sale) now you sell this and create a wash sale
tax basis 1300 sell for 1000 and buy SIS for 1500 your tax basis is now 1800 (1500 paid 100 from previous wash sale + 200 from purchase cost of 1200 and sale for 1000.
sell the security for 1800 or more there is no longer a wash sale. your sales price 1800 vs actual purchase cost of 1500 would, except for the wash sales, result in a $300 gain but because there is the 300 wash sale losses included in your tax basis there is no gain and you recognized the previous losses. 300 in wah saale losses is added to the tax cost is
This is standard reporting required by IRS rules. So make sure you are not doubling up by taking a loss already taken in a previous year or included in allowable losses for this year.