Hi,
Really appreciate your detailed response.
If I had to calculate it manually transaction by transaction I would be doomed, but that's why I was asking if there was a way to see it directly with the totals of a specific stock. Instead of calculating for all, just to take a sample of one stock that was only traded a couple times, because this way I can immediately tell if they are even taking the wash sales loss disallowed and carry it with the cost basis, which is what I am suggesting they didn't because I grabbed a sample like this and did some basic math.
For instance, this is a similar scenario to what I see on my trading but more basic just for sake of the example. I bought 100 units of stock XXX for $3 and sold 2 months later for $4... so basically made a profit of $100... then the stock started tanking because I took profits at the top. While trying to guess the bottom I saw an entry point into that same stock below my original entry at $2.5... (this within the 30 days of selling the original pack). Like it happens a lot, sometimes not a good idea to catch a falling knife... and I saw that the stock kept tanking and I wanted to cut losses fast and sold all my position at $2... so basically I would have lost $50 (if we still use the example of buying 100 units of that stock). It passed months and I didn't touch that stock ever again. Now I receive my 1099 and I see that I have a total of cost of $550 ($300+$250) and I have a total on the proceeds of $600 ($400+$200). In the column of the wash sale loss disallowed I have the $50 of loss from the second sale and on the column of profit/loss I have a profit of $100. Based on what I understand, unless I do it manually, Robinhood is ignoring the $50 that I lost on the second trade and I would have to pay taxes on the $100 profit. What I am suggesting is, can I manually just take the $50 loss of the second trade, from the $100 profit on the first trade and only pay taxes for the $50 net profit I had?
What I also don't know because I have not imported my transactions to Turbo taxx is that if I do it, if turbo tax software will already use the wash sales loss disallowed to do that math or completely ignore it.
Thank you in advance and I hope I am not over complicating, but if I don't figure this out I am looking at a potential payment of $60k in taxes.
