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How to adjust a wash sale disallowed loss if I sold my entire position, cost basis isn't increased

My 1099-B from fidelity has a few wash sales on it for different lots of ETFs I sold. For each sale of 2022 I sold the entire position, but I may have purchased a lot 30 days prior, but sold that as well all at the same time. Fidelity's sequence of selling the shares triggered small wash sales. However shouldn't the cost basis of the lot purchased 30 days prior be increased by the amount of the wash sale. It doesn't seem like Fidelity did that so even though I sold my entire positions it doesn't net out to 0 meaning I can't harvest the full loss.

 

Is it Ok for me to manually go in and add to my basis in Turbo Tax, or is this a red flag that it won't match my 1099-B should I contact Fidelity for a correction?

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1 Reply
JosephS1
Expert Alumni

How to adjust a wash sale disallowed loss if I sold my entire position, cost basis isn't increased

 Yes, you can adjust the basis in TurboTax for sales of stocks, etc.  While I cannot state whether what you propose is correct or not as I do not have access to your 1099-B, follow these steps to adjust the basis of your sales if you believe them to be accurate:

  1. On the Wages and Income link, scroll to "Investments and savings", click Edit/add
  2. Locate the sales item you wish to correct, click on the down arrow, and then "Edit"
  3. Click on the pencil icon to edit the transaction
  4. Now it will show the sales item that you need to edit.  There is a box at the bottom under your cost basis that says I need to adjust my cost basis.  Put a checkmark in the box.
  5. Enter the amount of adjustment you need and then choose from the options given.  Based on your statement I would suggest putting a checkmark in Box B for the cost basis is incorrect on the form then click continue.
  6. You will return to your item summary.  Repeat the above process for each item you believe needs adjustment.

This is a common procedure and does not normally red flag you for attention by the Internal Revenue Service.

 

@mrbojanglezs 

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