Thanks for updating your response!
The basis of each disqualified ISO is reported as ordinary income on the W2. So for each ISO same-day sale, do I keep its compensation (basis) as reported on the W2, enter the STG of 0 as reported on the 1099, then click the button to "adjust for another reason" at the end of the turbotax questions for that particular sale and put the disqualified wash there?
Another fine point - does the wash sale on the RSU sell-to-cover actually need to be adjusted in the released RSUs (that happened on the same day) or on the ISO same-day sale that occurred 7 days later? If it's the released RSUs, I guess the description of how to eventually adjust for the wash sale would be the same as what I wrote above, but it would be in the future when I sell those RSUs.
Why does example 2 on page 56 of Pub 550 (https://www.irs.gov/pub/irs-pdf/p550.pdf) not state that the wash sale for original ISOs can have their basis shifted to the replacement ISO shares? Was that just an oversight of the IRS, or was it because the first sale was also an ISO, but in my case the first sale isn't an ISO so the example doesn't hold? Example 1 on this page is very clear, but example 2 is either incomplete or is an exception to shifting the basis to the replacement shares.
@fanfare
