Got Etrade/MS 1099-B with accrued market discount and non-deductible loss from wash sale Used the summary reporting method to enter investment sales. Where do I enter these Accrued market discount values and non-deductible loss from wash sale in TT ?

[vickap]

TT users/experts,

I got an Etrade/Morgan Stanley 1099-B with accrued market discount (box 1f

)  and non-deductible loss from wash sale (box 1g) with multiple bonds maturing.

I used the summary reporting method to enter investment sales in turbo tax i.e Short Term (box A/B) and Long Term (box D/E)

In Turbo Tax, should I add the accrued market discount total to the non-deductible loss from wash sale to Total adjustment to gain(or loss ) box under the "I need to adjust my total cost basis" box with D (accrued market discount) box checked and

check box for non-deductible loss from wash sale (W)

Thanks a lot, in advance.

[Mike9241 · Accepted solution]

the total of the market discount and wash sale go in the adjustment column (g) on form 8949 with codes D and W in column (f)

[vickap]

Thanks.

I added the values for Nondeductible loss from Wash sale  (W) and Accrued market discount (D) and put it in Total adjustment to gain (or loss box) as a negative number.

I will be sending my 8949 form along with the 1099-B statements from my brokerage for the details on the Nondeductible loss from Wash sale  (W) and Accrued market discount (D) transactions.

[fredj4]

• Did you do this on the form 8949 or?

[baldietax]

@fredj4 not sure what your question is but if you have this situation and don't have too many sales with adjustments (wash sales, AMD or noncovered categories), you can enter these items as "one by one" in TT with the details, the input screen will have the same boxes 1f etc as the 1099-B.

This will put these items on Form 8949 in your return and there will not be any need to mail the IRS.

The balance of the 1099-B can be entered as a simple sales summary with no adjustment and it will all be consolidated on Schedule D.

If you already filed and it's a question how to mail the IRS you can send the 1099B with Form 8453 and check "Form 8949, Sales and Other Dispositions of Capital Assets (or a statement with the same information)" as the 1099B would constitute the "statement with the same information".