Wash Rule

[1ABC]

For 2025, I realized a $10.96 disallowed wash rule loss.  This happened because I repurchased shares just a few days after the loss.  My new purchase was for 10,626 shares.  Therefore, correctly, the $10.96 loss was spread across the NEW 10,626 shares.   Obviously, the end result was an extremely tiny, less than 1 cent per share impact on the cost basis of the NEW shares.  It was so small that it DID NOT affect the cost basis of the new shares...at all.  I have given up on trying  to figure out how to incorporate the tiny disallowed loss into TurboTax Premier 2025.  Besides, even if I could, the end result was a loss of less than 1 cent per new share that did not change the cost basis of the new shares.   I am not going to waste any more of my time trying to figure out how to properly account for the disallowed loss in TurboTax.  Why bother?  Anyone care to speculate if the IRS would even care that I failed to properly account for such a ridiculously small disallowed loss?

[MonikaK1]

The IRS does track wash sales regardless of size, but amounts less than $0.50 are typically rounded to zero on tax forms (Form 8949) and in software. While brokers must report wash sales on Form 1099-B, tiny disallowed losses (e.g., less than one cent per share) are not likely to create a taxable difference or cause an audit. 

Please see this TurboTax tips article for more information about the wash sale rules.

[Mike9241]

The broker should have done the adjustment, but the wash sale amount only applies to the same number of shares you sold at a loss. If you sold 500 at a loss and bought 10,000, only 500 are adjusted, but you won't see it on your monthly statements. statements