Investors & landlords

If you're reporting each trade, then any time you have a loss and it's a wash sale loss you make the correction with the associated 1099-B.  You can make this sort of adjustment using either the interview process or if you're using a desktop version of TurboTax, directly on Form 8949.  The interview process is probably the best way as direct entry on forms and schedules can sometimes prevent e-filing and/or void TT's Accuracy Guarantee.

 

After entering the 1099-B as it reads, click the "I'll enter additional info on my own" button.  On the next page you can either put the wash sale loss disallowed in the "Wash sale loss disallowed" box or put the correct basis for the trade in the "Corrected cost basis" box.  Either way, properly done, will get you to the correct gain or loss.  Using the 1st box will put a "W" code on Form 8949 while using the 2nd box will put a "B" code on Form 8949.  I wouldn't worry overmuch about the code used.  If your income is properly stated on your income tax return the IRS can't really do anything to you over a matter of "style."