Is there anyway I can add the deferred loss due to wash sale and cost basis reported to irs by broker with a note that explains the difference?

Forum|Forum|7 years ago
June 3, 2019
5 replies
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TurboTax Premier Windows

Best answer by TomYoung

So you are dealing with a sale of the replacement shares in 2017, correct?

First, double check and see if the broker hasn't already added the disallowed loss to the sale of the replacement shares, meaning you don't have to adjust anything. Broker systems are increadably "smart" these days and recognize the sale of replacement shares as exactly that and add back the disallowed loss.

If the broker hasn't done that then delete the sale and re-enter the 1099-B exactly as it reads and then click on the Guide me step by step blue button. Click the "my sale involves one of these uncommon situations" and work through the interview On the page "Did you buy this stock?" click "I bought this stock in a wash sale window" and you'll shortly come to a page where you're asked for the "Deferred loss from wash sale."

Tom Young

MichaelL1

Level 15

If it is a Wash Sale then the loss disallowed gets added to the cost basis on the remaining stock. Was this stock sold?

T

TomYoung

Alumni - Champ

There's no way to put "a note" into the income tax return unless you file by mail. Are you speaking of a sale that you made in 2017 where the broker is reporting a wash sale loss or are you speaking of a sale of the "replacement shares" that arose from a wash sale loss and want to add the deferred loss to that sale?

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dtn2Author

Level 2

it is a wash sale and loss was disallowed. For the replacement shares that was also sold in 2017, i used "enter additional info on my own" in order to add the deferred (disallowed) loss to the cost basis. however, in the Wash sale loss disallowed box, turbotax only allows to enter as positive amount and treated like a gain and subtract it from the cost basis instead of adding it to the basis cost. What should I do to add the deferred loss to the cost basis of replacement shares.

D