AmyC
Expert Alumni

Investors & landlords

Some brokerages report the wash sales clearly  for you and some don't. If the brokerage says they do not separate it, then you need to go through manually using the wash sale rule. It is a tedious process checking each transaction and number of shares.

 

Example:

Buy ABC 100 shares for $4,000 - date irrelevant

Sell ABC  100 shares April 1 for $2,000 0 could be a $2k loss

Buy ABC 50 shares  April 28 for $1,200

A purchase between April 2 and May 1, that is 30 days either side of the sale, you have a wash sale. So the wash is added to the basis and the most recent purchase is your purchase date.

However, only half the shares were purchased. So half is a loss and half is a wash.

Now, basis is $2,200, purchase date is April 28.

Half the shares reported as sold for $1k loss

 

This is why you really need to be tracking your purchases and sales with a spreadsheet like the IRS prefers. It makes it much easier to identify those wash sales. You will need to be tracking the new basis created from the wash sales as well.

@RS07

@fanfare  thanks for the catch in wording!  Edited 3/2/2022 (5:25 PST)

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"