Questions about wash sale

[douglasjia]

1st question:

In 2021, I have about 20000$ wash-sale (I sold stocks with loss and then bought these stocks back within a month). If I sold these stocks (which triggered wash-sale in 2021) in the future and didn't trigger the wash sale, will the cost basis be the original purchase price or the price I bought in the wash-sale (suppose I originally bought these stock with a cost of 30K; sold these stocks for 20K; and then bought back these stocks for 21K which triggered the wash sale; if I finally sold these stocks, will the cost basis be 30K or 21K?)? How will these information reflected in my tax document obtained from Robinhood (Do I need to manually figure these information out?)?

2nd question:

I heard each year the upper limit of capital loss is 3000$. If I lost 20000$ in 2021 and claimed 3000$ capital loss, can I claim the other 17000$ in future years? Will Turbotax remember this information and load this information automatically for me? Or I need to find this information manually from previous years tax return?

Is there a year limit on how long this roll over of capital loss can be?

[Mike9241]

the disallowed wash sale loss is added to the tax basis of the shares that created the wash sale.  yes, TT will remember what your clco is provided you use the same a/c in 2022

bought for $30 sold for $20  disallowed wash sale loss $10 

tax basis new shares the $21 you paid + the $10 wash sale loss.

Robinhood being in the US is required to make the adjustment when you sell the shares that created the wash sale.  the holding period from the original shares is included so this can transform what you think is short-term into long-term RH should report sales price of X cost of $31. if this results in again, no problem. if a loss and you again buy the same stock within 31 days of the sale you'll have another wash sale.

now remember if within 31 days before or after this sale you to repu

[DanaB27 · Accepted solution]

1. Your adjusted basis in the replacement shares is $31—$21 from the new purchase combined with your $10k loss from the sale. Your 1099-B will have the wash sales recorded. Please see How do I enter a wash sale on my 2021 return?

2. Yes, you can only offset $3,000 capital loss per year against your regular income. The rest can be carried forward indefinitely. Yes, if you transfer your return then the amount will automatically be entered on your 2022 tax return.

Please see What is a capital loss carryover? and How do I enter my capital loss carryover? for additional information.

[douglasjia]

So just to confirm, I do not need to do any manual calculation to get the cost basis right with the 1099B form from Robinhood (the cost basis will be the original cost basis before the wash sale)?

[JohnB5677]

You do not have to do any manual calculation,  your broker will have taken care of that. 

Also, the wash sale basis is the original basis plus the loss(es) from the previous sale(s).