Hello, I cannot figure out why TT is calculating a total capital loss of -11. Using made up numbers, my 1099-B section has a total loss of -5.80. On that form, total short term losses were -7, and total long term losses were -1. As far as I know there were no other short or long term capital gains/losses reported in my taxes. In the "how was the total capital loss" section, it states that these were -9 and -2 respectively. I'm not sure where or how to figure out how the total capital losses net calculation is coming together and slightly larger than expected...? Thanks.
You are correct in that the loss amounts reflected on the Investment Summary screen should be the same as the loss amounts reflected on your 1099-B. Because the amounts are different, it may the result of an incorrect cost basis--in that it may be overstated--or it could be an incorrect sales proceeds in that it could be understated.
Thus, go back to the investment section and review your cost basis for each item. Also check your sales proceeds to ensure they match your 1099-B.
Thank you @GeorgeM777 - very helpful. I delved into the forms a bit more and think I figured it out.
TT correctly uploaded all my cost basis numbers for all items and proceeds, as well as having the correct "total gain or loss" in the Investment section overview. Also, the wash sale loss disallowed was correctly uploaded.
However, it seems that when I click on the link to get to the Breakdown of capital losses, and ask it to show how it calculated this #, it reports net capital loss and net capital gains that are rounded versions of the #s entered in the investment section. I checked the math and think the rounding is the cause for the discrepancy - this net capital loss is the one that is reflected in other parts of my return (Eg state return).
From other parts of the TT help section, it seems that this sort of rounding is OK and standard in these cases...?
Thanks.
Yes, rounding occurs in TurboTax and most tax programs for 1099-B forms. The IRS does not question a small difference that is the result of the rounding of numbers.