In my 1099-B E*Trade, there are disallowed wash sale losses. I understand the disallowed loss is allowed to add back to the basis of the repurchase the same stocks. I looked at the 1099-B, and I did not see the E*Trade broker automatically add back the deferred loss to my repurchase of the same stock. I have questons for the basis adjustments:
1) I am not sure if the broker automatically add back the basis to your repurchase of the same stock? If yes, where is it ? if no, do I have to make adjustment one by one? how to track and adjust the basis in an effcient and easy way since there are quite a few transactions of wash sales in 2024 yr.
2) Does Turbo tax provide a tool to make basis adjustment in a easy and quick way? Thank you so much!
E*Trade is supposed to add the amount of the disallowed loss (due to the wash sale) to the basis of the repurchased shares (you can call and ask them to verify but it's a requirement).
However, the shares repurchased must have the same ticker symbol and the transaction needs to be in the same account for them to be able to track it.
The IRS requires that the broker makes the adjustment when you are using only one broker. There is nothing for you to do.
If you sell in one broker's account and buy using a different broker then you are responsible for reporting any wash sale.