If I use more then one Investing account and own similar or identical stocks in each of them does turbotax have the ability to detect a wash sale? I'm figuring it may not

[DDollar · Accepted solution]

No, the program will not detect a wash sale where the sale and purchase occurred in different accounts You will have to determine if you have any wash sales between multiple accounts and enter an adjustment in the 1099-B entry section.

[Jfresh20]

Appreciate the response thank you!

[DDollar]

You're welcome.  Thanks for using TurboTax!

[Jfresh20]

I think I may have had a disallowed wash sale. My taxes have already been filed, will I have to amend my taxes to change that? I also have a carry over loss still from 2018 which is greater then the loss disallowed.

[Jfresh20]

multi post sorry

[DDollar]

In order for your tax return to be correct, you would need to file an amended return.  If you have a loss carryover greater than the amount gain on the wash sale, it won't change your tax due.  It will only change your capital loss carry forward.

[Jfresh20]

Thank you. I will amend them to make sure everything is correct. Just to be sure does the wash sale only wash the loss from the first sale or does it wash the first sale and the second sale if they were both a sold for a loss?

[DDollar]

Only from the first sale.  The disallowed loss can be used to adjust the cost basis of the stock purchased that created the wash - unless it was in a retirement account.  In that case the loss is lost for ever.

[Jfresh20]

Thank you for your help, Sorry for dragging the initial question out.

[fanfare]

To avoid future problems,
refer to IRS PUB 550 Investment Income and Expenses section on Wash Sales before attempting this.

You should find an example that covers your situation.

[Jfresh20]

Thank you

[fanfare]

when you go to sell the identical shares, you will have to use Code B (basis) since your broker will not know the basis was adjusted by you.

[Jfresh20]

this is not to difficult of a process when I amend my taxes?

[Jfresh20]

this is not to difficult of a process when I amend my taxes?