TurboTax software creating wrong Gain/Loss on Stock sales

[linobarraza1]

When importing my documents from Webull, I immediately saw a variance of Net Gain/Loss.  Looking at the long term sales, that was correct.  Then going through the short term, I noticed some sales of my AAPL calls not being properly calculated in the Gain/Loss section which throws off my total net Gain/Loss. 

Example: 2 AAPL Call 12/16/22.  Date acquired 12/12/22, Date Sold 12/13/22.  SALE PROCEEDS 69.90 COST BASIS 26.08. 

**Those numbers are correct.  Total gain would be 43.82.  HOWEVER, It was being reported as 46.52.  Clicking the edit button and going through the options/list of that sale, TurboTax had a washsale rule apply for 2.70.  Looking at the actual 1099B form, there is no wash sale attributed to that sale. 

Not sure if this is on TurboTax's side of their software, or the data pulled from WeBull.  It is always recommended to look over some of the details of your brokerage forms. 

[mprev]

Same issue here. When imported it threw random wash sale amounts into TurboTax that weren’t on my Webull 1099-B. I’m having to edit 425 transactions. I posted a small capital loss (-$500ish) last year in my Webull account but with the incorrect glitch with wrong wash sale amounts, it says I had a $10k capital gain! 

This is a giant pain to edit each transaction but will be worth it to wipeout the incorrect 10k in income. Webull and TurboTax need to fix this!

[holeemolee]

I noticed the same. Wash sale for 1 entry is duplicated in multiple different rows (totally unrelated stocks) changing the total gain/loss amount.

Some items have wash sale disallowed even bigger than the original loss amount, turning a loss into a gain.

When can we expect the fix? 

[mprev]

I'm not sure. I wish they would say as surely thousands are affected. With my luck, the fix will come once I've finished manually editing my 415 transactions. I'm at 200 now so probably in the next few days.

[spq838]

Im also having this problem.

Almost every sale has wash sale even though it doesnt have in the 1099 B.

How do we get Turbo  Tax to fix this?

I tried editing 1 by 1 but its too much and is there a way to edit in a table view instead of having to go in 1 by 1?

Also, the transactions from 1099 B are not sorted in any order, it is extremely hard to  match it with while editing manually?

[JosephS1 · Accepted solution]

While maybe not the ideal solution, if you have the paper copy of your account you can enter the data manually as there are workarounds for all the information necessary to enter.

The 1099-B should guide you on what the treatment will be for including the trades on your return.  Generally your 1099-B should show the caption for the type of trade that it was - Short-term covered with basis reported to the IRS, Short-term not covered, Long-term covered, Long-term not covered.  Each section of the 1099-B needs to be entered separately.  You are allowed to combine transactions as one provided they are from the SAME grouping.  You enter the transactions in the Investment section of TurboTax as follows:

1. On the left side of your TurboTax screen, click on Wages & Income
2. Scroll down to "Investments & Savings" and click show more or edit/add
3. Click on "Add Investments"
4. Best thing to do here in my opinion is to click on "Enter a different way"
5. Click on the box for Stocks, Bonds, Mutual Funds and then continue
6. Enter the brokerage name at the top and the account number and Payer's EIN if you so choose (not required)
7. Answer the questions on the next page, which are normally, but not always, no, no (in this case even if it is more), no, and yes.
8. You can answer one by one and enter each group separately; if you answer yes you will will need to upload a pdf of your statement.
9. If your grouping has multiple sales, when you are asked the date acquired, click on something other than a date and choose various
10. Follow the remaining instructions and choices.  Whichever way you answer you will receive additional instructions.

Maybe not ideal as everyone would prefer to just have the upload perfect but if you are in a rush to file your return the above should assist.

@mprev 

@spq838 

[linobarraza1]

As mentioned by JosephS1, that could potentially be a workaround if one doesn't want to manually edit all the wash sales not associated with that sale.  Also keep in mind that a wash sale on the 1099-B form will show up on line 1g if I'm not mistaken.  So you'll have to check the box when Turbo Tax asks if there is any data within that grouping on that line item and enter it appropriately when prompted.

[spq838]

I dont see the options you mentioned. Im using Windows desktop TT Premier version.

I can only do Wages and Income->Investment Income->Update->Add More Sales

It then ask for Did you get a 1099-B or a brokerage statement for these sales?

From here these will only be 2 options

Import from my bank or brokerage (which is broken with the issue mentioned on this thread)

I'll type it in myself (will take forever for 500 transactions)

When do type it in myself, it will show to mail the 8453 form

TurboTax Premier Windows

@JosephS1 

[linobarraza1]

Hey spq838,

I noticed earlier today that it MIGHT be fixed.  I started a new tax file and started entering my information as usual.  When I got to the brokerage section and imported all my other ones, Webull was the last one I needed to import.  I tried importing it with the expectation of needing to fix it, however this time I noticed it looked correct.  What I suggest you could try doing (without deleting all your information), is either starting a "new" tax file, enter the basic information, skip to the brokerage portion and try importing your Webull documents.  If it works, then you can delete that file (or close and not save) and go back to your original file and just re-import the Webull data.  This would probably be safest it won't have the risk of deleting the work you have already done with the corrections to the wash sales.  If re-importing the documents create a new file for your tax, then you can simply delete the older one as that one needs to be corrected with your wash sales.  Just a suggestion.  If you do decide to try "creating a new" tax file, be sure to save your current progress. 

[spq838 · Accepted solution]

@linobarraza1 

I think Webull might have fixed it already. I received this email today from them.

Dear Valued Client,

You are receiving this notice because you recently uploaded your Webull 1099 Form to TurboTax. Unfortunately, our clearing agent produced a bad file at the time of your upload so the accuracy of your tax form could be suspect. We have been notified that the issue has now been resolved so we would advise that you first delete the old Webull 1099 file from your list, then upload a new version of the 1099 form with the accurate information.

We apologize for the inconvenience that this error has caused you.

[linobarraza1]

Glad it's all worked out now.  👍