Re: Wash Sale treatment for completely exited positions

rf_ee · Aug 27, 2024 12:47:03 PM

Last year when my brokerage information was imported to TurboTax there was a significant amount reported as wash sales. It appeared that TurboTax used the gains reported on the 1099B and then subtracted the losses reported on the 1099B and then added the wash sales. This caused TurboTax to report gains and taxes owed. When I look at the current gains and losses of my portfolio on my brokerage firm's site, it shows that I have a disallowed loss for some positions this year.My question is how do I avoid TurboTax reporting that I have gains for disallowed loss this tax year? Will the following strategy work? 1) Completely exit positions that show disallowed loss. At the end of this year, the brokerage account will have no positions that had disallowed loss. My thought is that the 1099B will still show disallowed loss for these positions.2) Wait to sell puts to buy positions in a separate IRA brokerage account after 30 days.3) What I expect to happen is that when I import the brokerage info into turbo tax, is that turbo tax will attempt to add in the "disallowed loss" from the exited positions. Since I do not own any of those positions, I will remove that amount from the gain-loss calculation and will not "owe" taxes on a disallowed loss. Does this sound like a reasonable strategy? Any other suggestions? Anything that I should be aware of?