TomOld you are absolutely wrong. I disrespectfully disagree w you. You are not a broker but defending the broker. Yet the broker admitted that once the wash sale is triggered it is never removed which by the IRS rule is wrong. I am by the way much more sophisticated then what you think TomOld . I have MTM accounting and trader status and i report my trades on 4797 form using Tradelog software. I know probably you never heard of that. I have tow argument to prove you wrong. The 1099B has different section. one section is called wash sale disallowed. What is the point of having such a section if I have zero positions and not traded anything nov and dec if it is already factored in the cost basis? TD ameritrade will sum all the losses from all the trades that involved a wash sale and put that there. so you are wrong. I think you are not knowledgeable and should be removed from Turbotax. . two years ago I traded one ticker SPY back and forth the whole year. The gain from wining trades was $20000 and loses were $15000. Net gain is only $5000. My tax liability is around $1500. However 1099B listed disallowed wash sale $15000. All my losses were wash sales. That can not be right. when i imported to turbo tax. Tax liability was $5000. Almost more than what I made. All i had to do is delete the wash sale disallowed. My other point to prove you wrong 1099B does not have wash sale allowed and wash sale disallowed. Everything is disallowed. All traders need to fix the 1099B by broker and remove the wash sales bc the Broker would not remove them. Wash sales reported on 1099B have nothing to do with cost basis calculation. It is just the broker listing all the losses from positions that triggered a wash sale alert. Net gain loss = Proceeds - cost basis. Wash sale amounts are not factored at all and not included in the calculation. It is only the loss that is identified as a wash sale and listed separately on 1099B. Per IRS and Broker these wash sales should not be counted for if the position is closed and the security is never traded. Whoever is reading this trust me. Run the numbers yourself.
