Beginning of your questions the following statement is correct about your wash sale in 2020.
- 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.
Adjust your 1099-B numbers on your manual record to the ones you believe to be correct and in TurboTax. (Sales price and cost basis should equal.)
.We will not be able to explain the difference in the numbers on your statement. If you have all of your documentation for the shares purchased, sold and the the repurchase of the same stock then you know what your wash sale loss is. For 2021, you will have no gain or loss that should show up for these shares so actually you need to equal the selling price and cost basis (both should be the same figure) while tracking your transactions manually outside of the tax return. Then when you sell you will use the basis you have now ($27,000 per your example).
When you finally dispose of the wash sale stock you will use the actual basis increased for these losses which your financial agent will not know. The broker will always know when a wash sale occurs but they will not know when it ends and they will not know the cost basis when it is sold.
Please update here if you need further assistance.
@ira2021 See the clarification above.
[Edited: 03/01/2022 | 5:24a PST]
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