I have a Morgan Stanley account where I receive RSU’s as part of my compensation. I just found out the hard way that RSU releases could trigger wash sales if I sold older shares with a higher basis <30-days after the RSU releases. On my 1099-B, it listed $1000 of “disallowed wash sales” that I wonder if I need to make adjustments for somehow. Below is a simplified (yet still complicated) summary of what happened:
Shares
1/1/19 Opening Balance 8,500
3/1/19 3,000 New RSU’s released @$9 11,500
3/11/19 Sold 2,000 older RSU’s @$8.50 (basis ~$15) 9,500
3/19/19 Sold 4,000 shares @$8.50 (incl ALL 3/1/19 RSU's) 5,500
For 3/11 Sale: 1099-B lists $1k of $3k in losses from 400 shares of “covered” LT losses as "wash sale loss disallowed". It also lists $10k in losses from 1600 shares of “non-covered” LT losses – no mention of any wash sales being disallowed, but there is a disclaimer that non-covered securities are not subject to IRS reporting requirements and may not reflect all adjustments required by law - not sure how to interpret that...thanks MS.
3/19 Sale included ALL 3/1/19 RSU’s, their basis remained at $9, no sign of any basis adjustments in the transaction details. 1099-B reported ST losses of ~$1500 (from RSU’s released on 3/1, and ~$1200 LT losses on older RSU’s).
Reviewing the 1099-B and transaction details, I don’t see any basis adjustments to the RSU prices that account for the $1k wash sale loss that was disallowed. Given I sold ALL the RSU’s that were released within the 30-day wash sale window I would think they should be zeroed out somehow. I entered the 1099-B sale details into TT (exactly as listed by MS), but date acquired was listed as VARIOUS for the older ones that were grouped together as the original purchase details are far more complicated and I wasn’t sure if I needed to adjust the basis of any of them vs the 1099-B details provided by MS.
At this point, I’ve entered the 1009-B info exactly as its listed by MS with no further adjustments.
