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wt516
Returning Member

Wash sales are counted as capital gain

After imported 1099-B, there are a few wash sales. I understand that I can't claim a loss from these wash sales. But they should not be counted as gains as well, right? But they are counted as capital gains although everything are correctly entered. For example: I have an entry in my 1099-B with the numbers:
Box 1d (proceeds): $3000

Box 1e (cost or other basis): $4000

Box 1g (Wash sale loss disallowed): $1000

 

The final result shows that I have a capital gain of $1000 rather than $0. I am using Turbotax Premier 2023 desktop edition

 

 

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3 Replies
rjs
Level 15
Level 15

Wash sales are counted as capital gain

I entered a wash sale in TurboTax (manually) using your numbers and it was not reported as a $1,000 capital gain. It was reported as zero gain, which is correct.


It's not clear what you mean by "the final result." Where exactly do you see the $1,000 capital gain - on what form(s) and what line(s)? If you are seeing it on a TurboTax screen, what is the heading or title on the screen? Post a screen shot if you can (but exclude any personal information).


Check the imported 1099-B information. Sometimes errors occur in importing. On Form 8949 are the proceeds and basis in columns (d) and (e) correct? Is there an adjustment code W in column (f) and an adjustment amount of $1,000 in column (g)?

 

Wash sales are counted as capital gain

could be a bug in premier because I'm using desktop deluxe and 

entered procceds 3000

cost 4000 then in wash sale column 1000

the 8949 shows zero gain/loss

also deleted the amount from the was sale column and entered 1000 in adjustment column with code W same result 0 gain or loss

 

wt516
Returning Member

Wash sales are counted as capital gain

It works when I input every trading transactions manually one by one. It should be some bug in the importing feature.

'final result' means the sub totals page of all brokers. What I saw that it was counted as capital gains was on the itemized page of each transaction.

 

There is no way to fix that even if I deleted those wash sales and reentered manually. Those gains were automatically transferred to other non-wash sales and finally messed up everything. The only way is to delete the entire broker and manually input every transactions in my 1099-B. The good thing is that I don't have many sales in 2023, therefore, it is acceptable. It will be a disaster for traders who could make hundreds tradings.

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