Thank you MinhT1 for your reply. I understand the $3000 loss deduction limit. That is not my issue.
My issue is that my 1099B is showing my capital loss for one of my Long Term Transactions for covered tax lots as "Loss not allowed also not reported" to IRS.
I sold some stocks on 12/23/2022 for a loss of -$2500. However, this transaction is showing up in 1099B as Loss not allowed also not reported to IRS. Since this was the only transaction I made on this account in 2022 or 2023, the 1099B's Total Capital Gain or Loss is set to 0 instead of -$2500. My loss should be reported and allowed as the Wash rule is not triggered (I did not buy the same/similar stock within 30 days before or after the sell).
My question is why would a transaction resulting in capital loss be marked as Loss not allowed and not reported to IRS?
I also understand that this is not a turbotax issue. Since my loss is marked as not allowed, when I import the 1099B, the loss does not show up in turbotax. The issue is my 1099B is showing the loss as not allowed. Why would that be the case?
Sincerely.
