Retirement tax questions
When you enter form 1099-B, on the Now, we'll enter one sale on your XXX 1099-B screen, scroll down to I have other boxes on my 1099-B to enter and put a check mark. This will show Box 1g - Wash sale loss disallowed.
Note:
- A wash sale is where you sell stock at a loss, and purchase substantially identical stock within 30 days before or after the sale.
- The wash sale rule prevents you from taking that capital loss during the year of the sale, if you buy the same (or a substantially identical) security 30 days before or after the sale.
- If some of the loss from your stock sale is disallowed due to the wash sale rules, report it here. Your financial institution will generally provide this information for you. However, if the amount reported by the financial institution is not correct, or they have not reported a disallowed wash sale amount even though it applies, you should enter the correct amount of disallowed wash sale amount here.
