Wash Sale Question: Do I need to add the excluded amount back if all positions were exited?

[Anonymous]

Received a 1099 from Robinhood for TY2019. There are four columns, and one of them is "wash sales disallowed". However, I left Robinhood and closed all positions in October, 2019, which means that as of December 31st, 2019, I should have been able to include those losses (I didn't buy equivalent equities elsewhere).

Do I need to add the "Wash sales disallowed" amount (-$9,735.47) back in, or is Robinhood just telling me what the total amount of "Wash sales disallowed" was throughout the year, but the cost basis of the other holdings were adjusted so when I sold those it all evened out in the end?

Thank you.

[Anonymous · Accepted solution]

the broker is supposed to adjust the basis of the shares causing the wash sale by the disallowed loss. in this case, you report exactly as shown on the 1099B because the disallowed loss should have been taken into a/c when you disposed of the shares causing the wash sale.

you should be able to recognize this on the 1099B because the cost of the wash sale shares should be = to what you paid + the disallowed loss. 

if unsure contact Robinhood.  they're the only ones that could answer for sure