Form 1099-B

Forum|Forum|2 years ago
February 28, 2024
1 reply
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I have numbers in 1g section of Form 1099-B which is referred as Wash Sale Loss Disallowed from the sale of my company's RSUs. However, I don't understand why some of the sales are treated as Wash Sale. Who can help me in this situation?

Ask the Experts - SelfEmployed - Feb 2024

DawnC

Level 15

You cannot deduct losses from sales or trades of stock or securities in a wash sale unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities. A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:

Buy substantially identical stock or securities,
Acquire substantially identical stock or securities in a fully taxable trade,
Acquire a contract or option to buy substantially identical stock or securities, or
Acquire substantially identical stock for your individual retirement arrangement (IRA) or Roth IRA.

If you sell stock and your spouse or a corporation you control buys substantially identical stock, you also have a wash sale.

If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities (except in (4) above). The result is your basis in the new stock or securities. This adjustment postpones the loss deduction until the disposition of the new stock or securities. Your holding period for the new stock or securities includes the holding period of the stock or securities sold.

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