My 1099-B form broker has summary of "proceeds" and Cost basis". there is another column for Wash sale Loss Disallowed. To make it simple, lets say my summary show:
proceeds is 10,000
cost basis is 7,000
wash sale is 2,000.
realized gain is 5,000
(In other words, i have to subtract the 2k from the 7k cost basis because its disallowed, therefore making my cost basis is only 5k and making my realized gain 5k.)
I have closed all positions prior to year end. So shouldn't my realized gain be 3k instead of 5k? I should be able to use the entire 7k cost basis which already includes the wash sale cost basis because I closed all my positions and didn't purchase anymore, right?
So how do i enter that in turbo tax? If I allow turbo tax to import it via online, it does, but it shows a realized gain of 5k. I need it to show a realized gain of 3k because i am supposed to be able to use the entire cost basis since i closed out all my positions before year end last year. So how do I do this on turbo tax?
If i try to enter it via summary, It asks for the total proceeds and total cost basis. If i enter just those 2 information then I'm fine, it will show a gain of 3k. But my 1099B shows a gain of 5k (due to the wash sale).
So how do i reconcile this? If i use the box "i need to adjust my total cost basis" and check box "W" (non deductible loss from a wash sale), then it will increase my gain back to 5k.
Bottom line: How do input the proceeds, cost basis and wash sale, but also indicate that all positions are closed therefore the gain should be 3k instead of 5k .
