The broker needs to stop the stupidity and remove the wash sales disallowed from the 1099B when the security is sold, position is closed and the security is never traded in the last 2 months of the year. Go educate yourself. This has nothing to do with the cost basis. The wash sale reported on 1099B is reported separately from anything else. Net gain/loss= Proceeds - cost basis. The wash sale is not part of the calculation. It is every time a trade triggers a wash sale. It is attached W next to that trade and all the losses are added to a separate column called wash sale column. These wash sales then get added up and the sum is reported on 1099B as disallowed. When importing the 1099B to turbo tax. Turbo tax does not allow these losses to offset gains made on other trades. Inflating my tax liability. I have go and manually remove all the wash sales from all the trades knowing that I closed the positions and i should use that loss to offset the gains and reduce my tax liability. I have to do extra work just bc TD people and turbotax people are too dumb to remove these wash sales from 1099B. Again these reported wash sales amounts on 1099B have nothing to do with cost basis calculations. Cost basis is nothing but average price of the security over period of time. Gains and losses utilizing cost basis are reported separate than wash sales. Wash sale should only be reported on 1099B if I still have a position open in that security or if i close the position in December.
