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andrewtmelby
New Member

Why doesn't turbotax automatically calculate adjusted cost basis as a result of wash sale losses disallowed?

 
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TomYoung
Level 13

Why doesn't turbotax automatically calculate adjusted cost basis as a result of wash sale losses disallowed?

It can't because it's not an accounting program carrying around an inventory of your stocks, it's a income tax return preparation piece of software and has no information or knowledge about your replacement stock.  Your broker is responsible for adjusting the cost basis of the replacement stock and it's that adjusted basis that's reported on your 1099-B when you sell them. 

Tom Young

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TomYoung
Level 13

Why doesn't turbotax automatically calculate adjusted cost basis as a result of wash sale losses disallowed?

It can't because it's not an accounting program carrying around an inventory of your stocks, it's a income tax return preparation piece of software and has no information or knowledge about your replacement stock.  Your broker is responsible for adjusting the cost basis of the replacement stock and it's that adjusted basis that's reported on your 1099-B when you sell them. 

Tom Young

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