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tax4max
Level 1

Should I change a wash sale disallowed note on a 1099-B, since the amount disallowed is 27cents?

TurboTax Premier is showing me an error on the Capital Gain Adjustment worksheet : "Accrued market discount should not be 0. Enter amount disallowed under wash sale rules, or leave blank if entire loss is disallowed."
The amount disallowed on the 1099-B is $0.27 and is being rounded down to zero on the worksheet. Should I remove the disallowed amount of $0.27 from the 1099-B since it rounds to zero, or wuill this be flagged since it is reported as a wash sale by my brokerage on the 1099-B?
1 Best answer

Accepted Solutions
MinhT1
Expert Alumni

Should I change a wash sale disallowed note on a 1099-B, since the amount disallowed is 27cents?

According to IRS rules, all numbers on the tax return have to be rounded to the nearest dollar.

 

A value of $0.27 is rounded to zero and should be ignored. If your form 1099-B shows wash sales of $0.27, just ignore it and leave the wash sale entry blank.

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6 Replies
MinhT1
Expert Alumni

Should I change a wash sale disallowed note on a 1099-B, since the amount disallowed is 27cents?

According to IRS rules, all numbers on the tax return have to be rounded to the nearest dollar.

 

A value of $0.27 is rounded to zero and should be ignored. If your form 1099-B shows wash sales of $0.27, just ignore it and leave the wash sale entry blank.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

tax4max
Level 1

Should I change a wash sale disallowed note on a 1099-B, since the amount disallowed is 27cents?

Thanks for that answer!

pattif12
Expert Alumni

Should I change a wash sale disallowed note on a 1099-B, since the amount disallowed is 27cents?

Yes, you should remove the wash sale since there is nothing to report. The IRS will not flag this. MinhT1 is absolutely correct.

ssuffolk
New Member

Should I change a wash sale disallowed note on a 1099-B, since the amount disallowed is 27cents?

I'm having the same issue and Turbo Tax asks that the line be blank versus zero.  However, the software won't allow me to change the zero to a blank, either on the tax form or on the TT entry.  

tax4max
Level 1

Should I change a wash sale disallowed note on a 1099-B, since the amount disallowed is 27cents?

You may have to go back to the TurboTax Form 1099-B worksheet form or its equivalent in the 'Stocks, Mutual Funds, Bonds, Other' section of Wages & Income, if using TurboTax on the desktop, and make the change there by clearing out any amount in the 'Box 1g Wash Sale Disallowed' entry field, for that specific stock trade. This should then propagate to the Capital Gain (Loss) Adjustment Worksheet.

I was unable to change it on Capital Gain (Loss) Adjustment Worksheet, which is where TurboTax flagged it in my case, during the Federal review process.

KathrynG3
Expert Alumni

Should I change a wash sale disallowed note on a 1099-B, since the amount disallowed is 27cents?

The way to adjust the errors in TurboTax Online is to return to the original entry. There is no way to adjust the wash sale at the Review.

 

To return to the Investment Section, leave the Review by following these steps:

  • Click Federal from the left menu.
  • Scroll down to Stocks, Mutual Funds, Bonds, Other and Review.
  • Click the Review button by the stocks that need correction. 
  • Click the pencil icon next to the stock transaction at Review your sales.
  • Continue through the next screens until you again are at Review your sales and reach Now we'll walk you through entering your sale detailsScroll down and check the box for I have more info to enter that I don't see here.
    • When testing this, I was able to enter amounts less than $1 in this area.

 

To adjust these worksheets in TurboTax CD/Download:

 

To correct the wash sale, try using the "Capital g/l adj" page. instead by following these steps:

  • From the Forms Mode, click Open Form.
  • In the Search box, enter Capital gn.
  • Under Form 1099-B Worksheet, select Capital gn(ls) adjustments/other info and Open Form.
  • A new window will open: Step 1: Add Capital gn (ls) adjustments/other info. Scroll to find the sheet for Capital g/l adj and select Next and Finish.
  • In Part III Specific Adjustments, scroll down and check the box next to Sale includes a disallowed wash sale loss (code W). Amount (leave blank if all)
  • Click on the box where an amount should be. Then, a + will occur to the left.
  • Click on the + Icon to open up the Description and Amount Worksheet and list your amounts here with the pennies.

 

See the screenshots below for further assistance:

 

@ssuffolk

@tax4max

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