when there is a wash sale the disallowed loss is added to the cost basis (and is reported this way on the 1099-b)of the replacement security that caused the wash sale
so say you paid $1000 for a security that created a wash sale and lets say the disallowed loss was $400
you now sell this security for $2000. it's supposed to appear on the 1099-B as
sale of X $2000, tax basis $1400 (the $1000 you paid + the previously disallowed loss)of $400) gain $600
if all securities were disposed of before 12/31/2021 all previously disallowed wash sale losses should not be realized and included on 1099-B. no adjustment should be necessary
for the sales with wash sale losses you still need to report them so the disallowed losses are shown.
failure will result in misreporting and you will almost certainly get a notice from the IRS that what you reported does not match the 1099-B they got.
i
your example does not make sense.
