I am having a slightly different situation and am not able to comprehend why should wash sale loss apply to me. Here is my sequence of events:
(1) I bought a total of 1000 units of a stock over different days in the month of Feb last year. Total cost for all those units lets say is $20K.
(2) All of these 1000 units were sold in March at $13K, thereby incurring a loss of $7K
(3) Later in the month of March, I repurchased X units as the prices dropped, at a cost of $20K, and this transaction was within 30days of the sale. I believe this is considered a wash sale loss.
(4) These X units are still unsold and continue to be part of my portfolio even in 2022. So, when I eventually sell them, let's say this year in 2022, their cost basis should be incremented from $20K to $27K, as the loss which was $7K. This is how I understand the wash sale loss works.
But I notice that in my 1099-B from robinhood for the year 2021, my cost basis (box 1e) for this stock is showing as $23K, which is higher than my actual cost, and hence my wash sale loss is also showing up as $10K (cost-proceeds, so $23K-$13K=$10K) .
So my questions,
(A) Can someone explain why is my cost basis higher in 1099-B? How was $23K computed anyway?
(B) When I import the 1099-B into Turbotax, Should I adjust the cost basis from $23K to $20K in effect adjusting the wash sale loss from $10K to $7K ? Remember, I have not yet sold the repurchased lot.
Thanks in advance.
