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Retirement tax questions
If you are entering the information one a one-on-one basis, select the box I have other boxes on my 1099-B to enter. Box 1g is available to report a disallowed loss due to the wash sales rules.
If you are entering the information on a sales section totals basis, select the box I need to adjust my total cost basis. W (nondeductible loss from a wash sale) is available to report a disallowed loss due to the wash sales rules.
The wash-sale rule prohibits selling an investment for a loss and replacing it with the same or a 'substantially identical' investment thirty days before or after the sale.
The loss not permitted is added to the cost of the newly purchased asset. Your broker keeps track of the wash sales.
More information may be found here.
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