I am new to trading stocks in an investment account.
According to my 1099-B summary of stock market trading this year, I traded for (numbers are rounded for convince)
Proceeds: $73,500
Cost Basis:$70,300
Wash Sale Disallowed: $5,000
Realized Gain: $8,000
this does not make sense on the face of it. if the sales price is more than the cost there's a gain and you don't have wash sales on gains. however, you need to check to see if the broker combined multiple transactions in the amounts. then it would be possible to have wash sales on some but not all the transactions. we can't see the documents or know what you did for the year.
if this is reporting multiple transactions then your sales price is $73,500
cost is $70,300
there is a disallowed wash sale loss of $5,000
so the tax gain should be $73,500-70,300+5000 or 8.200
in actuality the IRS wants each separate trade reported. so if this is say the combination of 5 sales, 5 separate sales need to be reported. the only exception to separate reporting are those of types A & D where there are no wash sales or other adjustments. in those cases, type A totals can be entered as a single line. the same for type D.
