DianeW777
Expert Alumni

Investors & landlords

I understand your position and your are correct.  The explanation is necessary due to misunderstandings and confusion.  If someone enters a wash sale loss in their return and then they realize they must remove it, then it does show them a different result on the tax return.  

 

In the end they are reporting the gain/loss they are and were always allowed to report.

 

As for options I wanted to include this to be clear: The wash-sale rule states that the tax loss will be disallowed if you buy the same security, a contract or option to buy the security, or a "substantially identical" security, within 30 days before or after the date you sold the loss-generating investment (it's a 61-day window).

 

@aweeva

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