1099-B form

[GAG1]

I've received a 1099-B form that has the amount in 1g section. It reads Wash Sale Loss Disallowed. What should I do with this number?

[DawnC]

You can enter this info in the investment section of TurboTax.   Select the product you’re using for the right instructions.   You'll need TurboTax Premium or any TurboTax Desktop product to add any 1099-B forms.

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TurboTax Desktop

The wash sale rule prevents you from deducting losses when you buy replacement stocks or securities (including contracts or options) within a 30-day period either before or after you sold substantially identical securities.   TurboTax will report your wash sales correctly; use the instructions above.  

The tax or cost basis of the replacement securities is the new cost increased by the disallowed loss.   This applies even if you buy the replacement stock in a different account. Buying the replacement stock in an IRA can be especially painful, since cost basis isn't typically recognized in these accounts.   Therefore, the loss on the sale would be lost.