how do i use turbo tax to modify a stock sale entry from 1099-B

[tpe]

I have multiple brokerage accounts, three 1099-Bs, causing headache for sure.

I need to modify 1099 stock sale entries to reflect wash sale. If I need to modify the entry with acquired date, acquired amount and adding the deferred wash sale amount to get the cost base, how do i achieve this with turbo tax software? Does this entry need codes: B and T in column f on form 8494, will turbo tax software handle this? If you know please\give me step by step guidance. Thank you.

1

[rjs]

No one can give you step by step guidance without knowing exactly what TurboTax product you are using. What year are you working on? Are you using TurboTax Online or the CD/Download TurboTax software? And what edition: Basic, Deluxe, Premier, etc.? The steps are not the same in all versions.

Also, how are the sales that you want to modify getting into TurboTax in the first place? If you are entering the information manually, you would make the wash sale adjustments as you enter each sale. Or are you importing the 1099-B information from your brokerage? If you are importing it, I would expect the information from the broker to already include the wash sale adjustments. Or is the problem that the wash sales are across different brokerages, and the broker where you sold doesn't know about a purchase from a different broker? But it's not likely that you are importing right now. Most brokerages would not have their TurboTax import data for 2019 ready this early, and you cannot import 1099-B information for past years.

[tpe · Accepted solution]

1. Yes, I plan to import the 1099-B from three brokerages when they are available.

2. Yes, the problem is that  the wash sales are across different brokerages, and the broker where you sold doesn't know about a purchase from a different broker.

3. I am preparing my knowledge now because i never deal this before. I do not have too many, maybe couple of them.

4. Let me give you one example:

4.1 I bought 200 shares of ABC for 10 dollars in 2018 in broker A.

4.2 I bought 100 shares of ABC for 5 dollars on 3/21/2019 in broker B.

4.3 I sold 100 shares of ABC for 4 dollars on 4/11/2019 in broker B. 

4.4 I sold 100 shares of ABC for 3 dollars on 5/2/2019 in broker A.

4.5 I sold 100 shares of ABC for 2 dollars on 12/18/2019 to close out this looser for good.

So, broker B does not know I have shares in broker A and vice versa. I guess the 1099-B from broker A and B will not calculate wash sale. Obviously 4.3 is a wash sale. I guess I need to modify this entry reported by broker B for 4.3 for 100 shares with a wash sale amount: $600 and code W, new acquired date from 4.1 and new acquired amount from 4.1. Then i need to modify the entry reported by broker B for 4.5 with new acquired date from 4.2, new acquired amount from 4.2 and add wash amount 600$ from 4.3 as new cost base. For this entry 4.5 I probably need the code B but not sure the code T. Will all this described by me be done by Turbotax software? Am I on the right track?