Does TurboTax take care of wash sales across different brokerages - especially: Charles Schwab and Robinhood ?

[tabshe17]

If not, what are my options to correctly report wash sales?

[Mike9241]

No. and neither does professional software used by pros. You'll have to do it manually. 

[fanfare]

see www.tradelogsoftware.com to solve your problem, for a fee.

Generally avoid wash sales.

Specifically avoid wash sales generated across two accounts at different brokers.

[Anonymous]

Thank you @fanfare What is the best way to deal with wash sales between 2 separate accounts at the same broker (ie TD Ameritrade). Unfortunately, I have 2 separate 1099-b and very likely wash sales between the 2 accounts. Thank you very much for your help.

[fanfare]

Are you an active trader   investor?

Did you close out by the end of 2021 all the triggering trades that might be subject to the wash sale  basis adjustment in 2021?

[Anonymous]

Thank you @fanfare  active trader yes and I did close out all trades before 12/31. I do not qualify for trader status according to IRS rules. Thank you very much for your help.

[fanfare]

@Anonymous 

The wash sale rules are an anachronism from 90 years ago.

If you closed out all your trades then the wash sales cancel out, even if across accounts.

You can just report what is on your 1099-B for both accounts.

See your Gainskeeper report in the TD Tax Center with wash sales and without wash sales to see what I mean.

[Anonymous]

Hello @fanfare    I am sorry to trouble you again but I have one more question. All my trades were uploaded from my broker Ameritrade to TurboTax. I am getting an error when I try to file that the 1099-b worksheet (cost or adjusted basis) is not between the prescribed upper/lower limit. Is there some way around this so that I can e-file?  I’m assuming that all the numbers in the return are ok even though this number is too high.  Thank you again very much for your help.     

[fanfare]

"this number is too high. "

??

Where and what is the actual number that Turbotax says is too high?

[Anonymous]

Thank you @fanfare number that is too high is 22,890,786.25.  This number is on the 1099-b worksheet, Capital Asset Sales Worksheet. (Copy 2). “Quick entry table”

It’s the cost or adjusted basis for one particular stock that was bought/sold many times. This $22,890,786.25 amount transfers over to the 8949 on one of many line items. Thank you again for your help. 

[AmyC]

On all returns, 1099-B Quick Entry Table Cost/Basis input is giving an error for values above 21,474,836.47. 

Instead, you can manually type in a summary of one or all 1099-B forms. You can enter 4 lines and cover the form(s).

Enter the totals for each:

• short term covered
• short term non-covered
• long term covered
• long term non-covered

When you enter summary data only,  you are required to send a copy of your 1099B to the IRS. Once you submit your electronic copy, TurboTax prints out a cover letter and instructions on where to send a copy of your 1099B.

[fanfare]

TurboTax won't take a proceeds on one transaction over 9.999.999

but it will take a total proceeds over 9,999,999 on the summary of proceeds for a Sales Category.

Go figure.

If you have one stock with proceeds over 9,999,999 as you say,

delete it and divide the amounts by 3.0

then enter the stock details three times.

[Kkulkev21]

Hi. I also had wash sales between 2 brokerages (Merril and Schwab). I bought and sold security in Merril at a loss in September 2023. Then I bought the same security in Schwab in September of 2023 and sold it few days later. Since it happened across brokerages, it’s not flagged as Wash sale in 1099B forms. 

how do I report this on TurboTax? 

[fanfare]

Assuming the same number of shares involved,

If you correctly enter the wash sale disallowed loss and adjusted basis,

you will end up with same gain/loss you see reported on your 1099-Bs.

@Kkulkev21 

[Kkulkev21]

So I bought and sold 4 shares in Merril and then bought and sold 2 shares in Schwab. 

first with loss of $1.67

second with loss of  $1.69