Assuming the compensation has been reported on the W-2 and there's no need to deal with that, then the easiest way to deal with this is to simply enter the sale exactly as reported on the 1099-B - wrong basis and all - and click on the "I'll enter additional info on my own" blue button. On the next page enter the correct basis in the "Corrected cost basis" box. The correct basis will be the sum of the 1099-B reported basis, the compensation associated with the sale of the stock, and the deferred loss from the wash sale loss.
TurboTax will report the sale on Form 8949 "as reported by the broker" but will put an adjustment figure into column (g) of the Form, a code "B" into column (f) of the Form, and the correct amount of gain or loss which includes the adjustment.
Tom Young
