I have been using summary tab and filling my taxes for few years. I always thought Robinhood's 1099 will calculate properly and always filled looking in to summary tab.. Thankfully i don't trade with any other broker.. so will this cause an issue for me in any way ?
Does Robinhood calculate it correctly now for 2019 & 2020 ?
QUESTION:
If I had a wash sale loss in a fiscal year, ideally the disallowed loss should be added to cost basis of the same stock and when it is sold for good or 30+ days.. then we can realize the loss.
My question: when we file tax we look at the summary on 1099 and fill the amount. Assuming the cost basis is automatically updated by Robinhood for following year. is that right?
Example:
In June 2018 bought 1 share of company (XYZ) for $15, next day sold for $10, following day bought again for 13$.
2018 1099 shows:
Wash sale disallowed: $5
App shows cost basis of share is $13
For me Cost basis of the share is $18
In Feb2019 I sold the share(XYZ) for $15
2019 1099 Should be what, will it should me a loss of $3 based on $18 cost basis or will it show me a profit of +$2
option1) 15-18 net loss on share (xyz) = -$3
or
option2) 15-13: net gain on the share = +$2
