"I just confirmed with TD ameritrade that Brokers do not remove wash sales from 1099b when the security is sold disposed and never trades in the last two month of the year.
Yep, that's exactly what we've been trying to tell you. The wash sale stays there, PROPERLY REPORTED, because the basis of that "last sale" has been grossed up. So to remove the wash sale from the 1099-B would UNDERSTATE your income. That "prudent investor/trader" nonsense is coming from your fevered imagination. If brokers were routinely preparing 1099-Bs that tended to understate the income of all those "prudent investor/trader" folks - not as tuned in as you - don't you think the IRS might be interested in that?
If you encounter a wash sale situation for a stock pays dividends monthly and you're reinvesting those dividends you typically will see the adjustment in your oldest lot. FIFO and all that.
