My 1099-b info includes wash sale loss disallowed. i do not believe this should reduce my federal loss recognition.

posted

I'm really not following what you are saying.

If the broker has flagged a sale as a wash sale loss then that loss is not recognized when you enter the trade. The loss is deferred and becomes part of the basis of the replacement security. The loss gets recognized when you sell the replacement security. If you don't sell the replacement security until next year then, yes, the amount of loss you can claim this year is reduced.

Tom Young