Hello ( @DianeW777 or any expert)
In 2020 i had a substential wash sales loss disallowed on my 1099 even though I sold all the positions before end of year. resulted in big gain instead of net loss.
My mistake, I assumed Turbotax will account for this, it did not.
If i amend my 2020 taxes, it is too late to ask for refund.
Questions:
Option1: Can I use the 2020 wash sales loss disallowed as regular capital gain loss and deduct it from following years capital gains?
Option 2: Should i amend 2020 to show real capital gains losses and carry these over? (why is this different than option 1?)
What are my options ?
Thanks in advance
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why didn't the 2020 1099-B reflect those gains? Turbotax would only reflect either what you entered or imported. if the 1099-B was in error, you should have requested a corrected one and reflect that in your 2020 return.
if those gains should have been reflected in 2020 you would need to amend 2020 and pay any taxes owed and then you would get a bill for penalties and interest. if you would still get a refund but smaller, that amount would be forfeited.
if there were no wash sale loss left at the end of 2020, which is what you seem to be saying, 2021 would need to reflect the proper capital gains/losses. you can't properly report realization of those wash sale losses in 2021 if they should have been in 2020.
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