Why is my PA state form Schedule D not properly transferring cost basis, proceeds, and disallowed wash sale data from federal form 8949?

[bg149]

I have wash sale / cost / proceed adjustments from my 1099-b box 1g that I've imported into my Federal return for completing form 8959.  However, when I completed my State return, form Pennsylvania Schedule D, the disallowed wash sale / cost basis adjustments are not reflected.  Therefore, I have a capital gain on my federal return of around $6K (which is correct), but just realized my State return shows a net loss of over ($65K), which is obviously incorrect.  My column "Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g)" on my federal return is $71K (which is the amount shown on brokerage 1099-B) but the effect of this is not being reflected in the gain or loss computation for my State return.

I've never had this be a problem before, as I just checked my 2017 and 2016 returns with no issues, which were also completed via turbo tax.

[re2boys]

PA does not follow  the federal wash sale rules.  Report the Schedule D transactions without the wash sale adjustments.

Seehttps://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Pages/Gains-Losses-Sale-Exc...

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[Anna4188]

I'm currently having this exact issue. Did you happen to figure out what to do? Did you have to manually adjust every trade? I have hundreds and hundreds of day trades. Did you actually mail in your entire 1099-b? Please share if you can!! Thank you!

[bg149]

Sorry to say that I did not figure out how to do this systematically or through the upload of my 1099-B brokerage data.  Back when I posted this I was in the process of filing an amended return because I didn't realize the data didn't transfer to my PA return correctly before filing (I was in a rush and never had that problem before in almost 10 years of using TT!).  When I filed my amended return I just dumped all my brokerage data into Excel and made it look like PA Schedule D so I could manipulate each line to reflect the correct G/L and cost basis, etc.  

Unfortunately I'm dealing with the same issue for my 2020 tax return, which is why I haven't filed yet.  I too have hundreds of lines of trades, and quite frankly it is very annoying that TT can't import major brokerage data correctly for my state return.

[Anna4188]

I discovered my brokerage offers a gain/loss report unadjusted for wash sales. I figured I would use the net gain/ loss from that report on the schedule D and then attach the report as a PDF along with my 1099-b. I brought my info to a CPA today for advice and because I would want her to e-file the return for me since it's hundreds of pages long. She was hesitant to prepare the schedule D in this manner but eventually said it made sense. Is that how you are manipulating the numbers also? Or are you manipulating them to match the federal gain?

[bg149]

I will have to see if my brokers offer a 1099 unadjusted for wash sales for 2020.  If I can get one I will probably take the approach you are taking.  Report that net G/L amount on the PA schedule D and attach the “unadjusted for wash sale 1099” as support.   Which brokerage do you use?  I have some activity from Vanguard and some from Interactive Brokers.

When I ran into this problem in the past I simply made my gain on my PA state return the same as on my federal return.  If PA accepted my initial return saying I had a $60-some thousand dollar loss surely they weren’t going to give me much of a hard time reporting an amended $6k gain and paying them more in taxes.  Quite frankly at the time I was just so fed up with the whole thing.   

[Anna4188]

I have Vanguard also for long term holds but all of my active trading is done on Td ameritrade's think or swim platform. It's great. I highly recommend checking it out. The report isn't a 1099 though, just a basic export. It can't be uploaded into turbotax.