My Fidelity 1099-B doesn't take into accnt Wash Sales when computing the Rlzd Gain/Loss. Should I adjust it manually in Turbo? results in a diffrnt amount from the 1099.

[mihaylov_tax26]

Other brokers take into account Wash Sales when computing the Realized Gain/Loss amount. Not sure why Fidelity doesn't. When I upload to Turbo, it automatically adjust for the Wash Sales and I get a number that differs from the Realized Gain/Loss on the 1099-B. Should I go with what's on the 1099-B or the number that Turbo calculates?

[AmyC]

If you have multiple brokers, you will need to identify wash sales that are created among them. The brokers only know what you do with them. If you buy from another broker, purchase for your IRA, etc then only you know about the wash sales. You need to review for wash sales and eliminate any losses associated with them.

[PN10]

Fidelity’s 1099-B only shows the Gain/Loss amounts before they have been adjusted by the wash sale amount.

Schwab’s 1099-B only shows the Gain/Loss amounts after they have been adjusted by the wash sale amount.

As far as I can tell, TurboTax downloads from both of them have appeared to show the adjusted amounts correctly, but the lack of industry standardization on the 1099-B forms makes it a little confusing.

[GeorgeM777]

Yes, make whatever adjustments you feel are necessary.  The Schwab 1099-B appears to be the more accurate between the two as it reports wash sales and resulting disallowed losses.  Regarding the Fidelity 1099-B, keep the records that support whatever adjustment you make as the IRS will only receive the 1099-B issued to you.  However, in the event that Fidelity issues a Supplemental 1099-B, any issue regarding wash sales may not be an issue depending on what the Supplemental Information contains; however, in the interim, keep all relevant documents.  

@PN10

[PN10]

Fidelity still has not cleared this up. Their printed 1099-B has a column called 'Gain/Loss (-)'. What is different about the Fidelity 1099-B is that the amounts displayed in this column have not yet been adjusted for the 'Wash Sale Loss Disallowed' which is displayed in the previous column.

My other brokerage shows this column as 'Realized Gain or (Loss)' and the numbers in the column have already been adjusted for the 'Wash Sale Loss Disallowed'.

Apparently there's no industry standard practice for how this information should be displayed on the 1099-B.

[fanfare]

your final bottom line subtotals for proceeds and cost for Box A transactions have been calculated taking into account any wash sales. Use those numbers on your filed tax return.

Fidelity is required to do it by the IRS, just as all other brokers are.

@PN10

 Include also the adjustment amount shown in column (g).