Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 4, 2019 7:38:36 PM

What does it mean if on 1099-B turbo tax says I need to check because "Accrued market discount-97 should not have a value if a disallowed wash sale is present."

I'm done with all of the turbo tax but it now wants me to "Check this entry" and has so far given me two of the same messages, listed above. I have no idea what I should be looking for, or where. Please help.

0 16 3884
1 Best answer
New Member
Jun 4, 2019 7:38:37 PM

If a sale is flagged as a wash sale loss then that loss is not recognized when you enter the trade.  

The loss on a wash sale is deferred and becomes part of the basis of the replacement security.  

The loss gets recognized when you sell the replacement security.  

If you did not sell the replacement security this year, the amount of loss you can claim this year is reduced by the wash sale amount.

In other words, if you had a disallowed loss from a wash sale, make sure you add the loss to the cost basis of the replacement stocks. When you eventually sell the replacement stocks, you will be able to claim the loss at that time. For example, if you had a disallowed loss of $500 on XYZ stocks, and the replacement XYZ stocks cost you $5,000, your new cost basis will be $5,500. If you sell the stocks next year for $6,000, you will have to report a gain of only $500.

The fix here is to go back to that trade and make sure Box 1g is completely blank.  If that doesn't fix things then completely delete the trade if you didn't sell the replacement wash sale stock in 2016.

16 Replies
New Member
Jun 4, 2019 7:38:37 PM

If a sale is flagged as a wash sale loss then that loss is not recognized when you enter the trade.  

The loss on a wash sale is deferred and becomes part of the basis of the replacement security.  

The loss gets recognized when you sell the replacement security.  

If you did not sell the replacement security this year, the amount of loss you can claim this year is reduced by the wash sale amount.

In other words, if you had a disallowed loss from a wash sale, make sure you add the loss to the cost basis of the replacement stocks. When you eventually sell the replacement stocks, you will be able to claim the loss at that time. For example, if you had a disallowed loss of $500 on XYZ stocks, and the replacement XYZ stocks cost you $5,000, your new cost basis will be $5,500. If you sell the stocks next year for $6,000, you will have to report a gain of only $500.

The fix here is to go back to that trade and make sure Box 1g is completely blank.  If that doesn't fix things then completely delete the trade if you didn't sell the replacement wash sale stock in 2016.

Level 2
Feb 15, 2021 10:57:42 AM

I had the same problem, with a ZERO getting prefilled into the disallowed wash sale amount and then Turbo Tax would not allow me to edit the amount.

 

How I fixed it:

If you right click on the field in the form which has the pre-filled ZERO in it, the pop-up menu appears, select "OVERRIDE", then type in the disallowed wash sale amount.

 

Not exactly intuitive-- come on Turbo Tax you can do better.

 

Hope that helps!

Level 2
Feb 15, 2021 8:12:52 PM

Having same issue - when I right click on the field not seeing "override" option.  Can you please list out the steps/what browser you are using etc thanks!

Level 2
Feb 16, 2021 6:52:54 AM

I was using Turbo Tax installed software on my PC, not via the web.

 

This error occurred on some covered calls I had written.

 

As i recall, I had flipped into the "forms" view (try doing that) and corrected the acquisition/sold dates, and i think that's where i discovered I was able to override the value.  Sorry don't remember exactly.

 

Sorry i can't be of more help.  Good luck with it.

Level 9
Feb 16, 2021 10:00:33 AM

You are correct, there is a workaround needed to get past the washed sale error in 1099-B.

Washed sales get rounded down to $0 when the value is .49 cents or less.  This type of rounding is allowed by the IRS but unfortunately, zero is not a valid value for this field, and it produces an error message.  This might help with this error.  Here are the steps to try:

 

You can edit each individual transaction and delete the amount entered in the wash sale adjustment if it is $0.49 or less.  This should clear the error message.  

 

To do this, you will need to revisit the input section for the Form 1099-B transactions.  Use the following steps:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-B” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to 1099-B
  • Click on the blue “Jump to 1099-B” link
  • Click Edit beside the institution name
  • Click Edit beside each transaction that contains a wash sale adjustment amount of $0.49 or less
  • Delete the wash sale adjustment amount and click Done

@cmakuch

 

Level 2
Feb 16, 2021 11:26:49 AM

Thank you - still searching for a work around

Level 2
Feb 16, 2021 11:28:28 AM

My issue is not the .49 but 2 wash/disallowed entries of $70 and the other $900.  I have tried both zeroing out, leaving blank and putting in these values of 70 & 900...nothing so far is working

Returning Member
Feb 16, 2021 4:59:03 PM

Yea i am in the same boat. I imported my 1099 B from Betterment. When i was about to file i got a notice from TT about 145 transactions needing corrected. It was related to all these wash sales showing as 0 on the form.

 

when i went to delete them out  (all 145 entries manually). TT then is saying something along the lines of 'Accrued market discount requires a value when the sale does not result in a net loss.'

 

So not sure where to go next, this is very painful to manually adjust all these, even when paying for turbo tax premier. 

Returning Member
Feb 16, 2021 5:05:58 PM

Just thinking on this more, do i need to uncheck the box next to the ' Sale includes a disallowed wash sale loss (code w). Amount (leave blank if all)?

 

This doesn't feel right, but I'm at a loss of work arounds. 

 

Help!

Level 2
Feb 16, 2021 7:06:52 PM

This has to be a bug.  I had 3 entries that were flagged for "check this entry" Form 1099-B (TDA) Capital gains/loss adjustments - accrued market discount should not be 0. Enter amount disallowed under wash sale rules, or leave blank if entire loss is disallowed.  1 of the 3 entries had a reported amount (disallowed under wash sale) of .04 cents. The other 2 did not report anything just hyphens --- which I am thinking zero. So I go to the actual form an edit the 3 entries. Had to enter the .04 cents for the one and that fixed it!  The other I have tried $0.00, $0.01,$0.00 and left empty - these two continue to flag when reviewed. Nothing works.  I have even deleted the 2 "problem" transactions and it still flags - tried adding those 2 manually - nothing works.  This has to be a bug; but there has to be a work around also; any TT gurus available?  Seems like the simplest of problems...

Level 2
Feb 16, 2021 7:08:27 PM

for the Wizard - yes it doesn't feel right agreed - but I tried anyways and struck out.  Out of ideas - hoping someone in this community has a solution

New Member
Feb 17, 2021 2:12:31 PM

I had the same issues and found a workaround. Pretty much what ReneeM7122 said. When I was doing my 'review', I took a picture of every transaction with that issue. I then went back to the income section to edit my 1099-B. I found each of the problem transactions and deleted the wash sale amount (e.g., 0.22). When I was done, I was able to complete the review without issues!

 

I talked with a TurboTax specialist, but they were not able to figure out a solution. I discovered this workaround after. FYI, I imported my 1099-B from Betterment. Looks like TurboTax has a rounding issue: betterment.com/resources/tax-software-importing/#5

 

Hope this helps you and the many others who will have this issue!

Level 2
Feb 17, 2021 5:41:20 PM

Thanks - but I have tried this as well as deleting those 2 transactions (added them back manually) nothing is working - I do have an open case with TT support.  When I find a workaround I will post for anyone like me.

Level 2
Feb 18, 2021 5:14:11 AM

Solved!  (for me anyway) TT escalated and studied the issue; basically the fix was clearing the wash/disallowed field like we had done several times before but on the 2 transactions that kept flagging - we were changing the wrong ones!  I'm still not sure how they identified the specific transaction to know that was the problem but it happened to be the transaction right above the one we were changing. So for instance if there were 5 transactions for company XYZ - I was changing the fifth one in sequence when it turned out to be the fourth.  Hope this helps someone else!  : )  Blessings - Bill

New Member
Feb 20, 2021 4:06:46 PM

Another workaround is to stay is EasyStep - Federal Taxes - I'll Choose What to Work On - Investment Income:  Stocks, Mutual Funds (Update) and then find each of the problematic forms with the small wash amount (best done by comparing the form number given in the Smart Check) and eliminating the tiny number (less than $1) in the wash amount.  

 

This got rid of the errors and allowed me to e-file.  

Level 15
Feb 20, 2021 4:36:33 PM

why are you clearing the Wash sale disallowed when it is the accrued  market discount field that is in error?

 

I understand a tiny wash sale disallowed causes other problems and must also be repaired..

What if the wash sale disallowed is greater than $1.00 ?