Where in Turbotax 2022 to add the increased cost basis from the previous wash sale to the cost basis of the second stock sale?

[netoria76]

I have two employee RSU transactions, both were sold at a loss.  The first transaction is considered wash sale as I was given the second batch of RSU 3 days prior to selling the first batch.  Since the gain (buying) of second batch is within 30 days of selling the first batch, the first transaction is considered wash sale.  (Please correct if I am wrong)

Now Form 1099-B from E-Trade does not show the cost basis of RSU, so I need to calculate it myself. 

I understand that since the first transaction is wash sale, the loss is not deductible but I can add the loss (let's say -$5,000) to the cost basis of the second RSU that I sold. 

My question is, where in TurboTax 2022 I can add the increased cost basis ($5,000) from the first sale to the cost basis of the second RSU sale?   Thank you.

[JohnB5677]

Since the gain (buying) of second batch is within 30 days of selling the first batch, the first transaction is considered wash sale. 

• Yes, the first transaction is a "Wash Sale".

Form 1099-B from E-Trade does not show the cost basis of RSU, so I need to calculate it myself. 

• That is correct.

I understand that since the first transaction is wash sale, the loss is not deductible, but I can add the loss (let's say -$5,000) to the cost basis of the second RSU that I sold. 

• Again, you are correct.  Provided you sold the second batch of RSU, and didn't purchase anything new for 30 days prior, or after, you can adjust the cost basis.

My question is, where in TurboTax 2022 I can add the increased cost basis ($5,000) from the first sale to the cost basis of the second RSU sale?   

• I'm not sure if you're on the Desktop, or Online, but I'll give the Online answer.  The Desktop is very similar.

On sidebar 

1. Select Federal 
2. Wages & Income 
3. Select Wages and Salaries, or Revisit 
4. Scroll to Retirement Plans and Social Security
5. Select the type of income.
   1. IRA, 401(k), Pension Plan Withdrawals (1099-R)
   2. Social Security (SSA-1099, RRB-1099)
   3. Canadian Registered Pension Income
6. At this point you can edit an existing document of [Add another 1099-R]
7. If a new 1099-R continue to Let's import your tax info
8.  You can import by selecting your provider. 
   1. Follow the instructions.
9. —----  Or to post manually —-------
10. [Change how I enter my form]
11. [Type it Myself]
12. Post your information exactly as it shows on your 1099-B
13. On the input screen, just below Box1e - Cost or other basis.

There is a check box The cost basis is incorrect or missing on my 1099‑B

Select the box and make the adjustment.

If this does not completely answer your question, please contact us again and provide some additional details.

[netoria76]

Thank you for the response. I have TurboTax Premier 2022 Win desktop version.

I have trouble following your steps. I've located 1099-R on the system as below:

After clicking on Retirement Plans and Social Security I get this page:

If I selected No it then asked me whether I take any disaster contributions. If I selected Yes and Continue it asked me to import 1099-R from broker. However, trying to import from E-Trade wasn't successful as it says no 1099-R form can be found.  I also checked directly my E-Trade account and only 1099-B is available. This is where I am stuck.

Thank you. 

[JohnB5677]

We can work with this:

First download and print the 1099-R

1. From where you are now select Yes.
2. On the next screen, on the left I'll type it myself - Continue
3. Select Form 1099-R, withdrawal of money from a 401-K, retirement plan, pension, IRA etc. - Continue
4. Post the information directly off of the 1099-R.
5. The line numbers will match up.
6. Continue through the rest of the interview.

If this does not completely answer your question, please contact us again and provide some additional details.

[netoria76]

Thanks for helping. The problem is that E-Trade doesn't have a 1099-R but only 1099-B, so there is no way to import it or type it manually. 

I am wondering if I can just add the increased cost basis on Form 8949 as below.  You can see the first row of Line 1 is a wash sale so the Amount of adjustment (box g) is 11,880, resulting in 0 gain/loss (since it's a wash sale I can't report a loss).  

Then, on the second row of Line 1 the second batch of RSU was also sold at a loss, so I can add the -$11,880  to the Amount of adjustment (box g), resulting a total of -$17,705 gain ([$15,307 - $21,132] - $11,880 = -$17,705).  Please let me know if I understand this correctly. 

[AbrahamT]

Follow these steps to enter wash sales. See HERE. As you keep going through the prompts, you'll get to this screen

eventually you'll get to this screen

 

and will seamlessly show up in forms over here

On the second sale, you may just want to add that disallowed loss directly to your cost and code it as W as this is referring to the disaalowed loss from your first sale that you are adding to the cost of the second sale. Keep a record of these transactions for backup so that you will be able to explain it should an issue come up in the future.  

[netoria76]

Thanks for the update.  Just a question, I am a little confused which of the two sales should be coded as W. The first, which is a wash sale, or the second? Thank you. 

[ThomasM125]

The first should be coded "W" as a wash sale as that was what it was. The "W" stands for wash sale.