Wash sales loss

[spsa]

Hi, 

I have a query regarding wash sale loss. I purchased 120 shares of ABC on 11/19/2020 and sold all of them on 12/01/20 with $6000 gains. I repurchased 25 shares of ABC again on 12/16/2020 and sold all of them on 12/23/2020 with loss of $500 triggering wash sale loss. This got reported on 1099-B from fidelity in box 1g (wash sale loss disallowed). 

My question is can I adjust cost basis of my original purchase to factor in the wash loss sale and decrease my taxable gain to $5500 ($6000-$500). All examples i have seen about adjusting cost basis is if you have loss first and gain later on repurchase but have not seen an example where you have gain followed by loss. Any help will be appreciated. 

Thanks!

[Mike9241 · Accepted solution]

based on what you described there should be no wash sale since you disposed of the entire first purchase at a gain.  also the 12/23 sale is more than 30 days after the 11/19 purchase.  so either your leaving some info out or your FI messed up.  for there to be a was sale on the 12/23 sale either 30 days before or after the sale you must have purchase replacement shares.  that would include a date in the year 2021.  if there is a wash sale the broker is required to adjust the cost basis of the shares that caused the wash sale. 

note that a wash sale can occur in a taxable a/c if you buy within the wash sale period similar securities in an IRA or other tax deferred a/c. 

[spsa]

Thanks Mike 9241. You are right. I looked again and saw that I bought additional 26 shares on 12/26 that didn’t get reported on 1099-B because I still own them and Fidelity already has the cost basis adjusted for 2021 tax year for them. My mistake but thanks for your reply!

[MimiX]

I keep getting errors that Wash sale disallowed cannot be greater than the cost basis and proceed difference. 

Please help!

Brokerage Number of sales Proceeds from sales Cost basis from sales Adjustment Total gain or loss

XXX	83	$1,522,613.00	$1,571,288.00	$34,486.00	-$14,189.00	Edit
XXX	369	$6,025,924.00	$6,165,342.00	$170,519.00	$31,101.00

[fanfare]

" Wash sale disallowed cannot be greater than the cost basis and proceed difference. "

Whatever you lost on that trade, it can be partly or totally disallowed, but no more than that.
The disallowed loss is a positive number in column(g).

If you are summarizing, the disallowed amount is the sum of all disallowed losses.