Problems using more than one Trading Platform while buying and selling the SAME STOCK..wash sales/profit loss etc. Scottrade and TDAmeritrade ??

[Chuck4]

I made a mistake and bought and sold a position on TDAmeritrade I was already 'in'  on  Scottrade.  I also just sold a position on Scottrade at a small loss I wish to re-open on TDAmeritrade and may cause a Wash Sale.  I used both platforms last year and there was not problem, but I didn't mix the positions as I did in 2015.

[TomYoung · Accepted solution]

I believe what you are saying here is that you have a wash sale loss, or losses, because of buys and sells at different brokers, though I'm not sure where you ended up after all was said and done.

If a sell at one broker and a buy at another broker created a wash sale loss and you did not sell the replacement shares by year end then you do have a duty to defer the loss to the necessary extent.  You'd do that by adjusting the basis on the sell trade by the appropriate amount.

If a sell at one broker and a buy at another broker created a wash sale loss and you did sell the replacement shares by year end then "technically" you should reflect that in the reporting of the 2 sells, but as a practical matter your net gain or loss across brokers is correct so I would see no compelling need to adhere to the technicalities.

Tom Young

[Chuck4]

Tom, thanks.. I was concerned about Turbo Tax's program dealing with going across different trading platforms and mixing and matching something like wash sales.... you absolutely know what you're talking about and it's nice to see a confirm of my understanding of 'Wash Sales'.  Thanks again.