1099B wash sale disallowed

Discussion in 'Taxes and Accounting' started by stckwatch, May 9, 2021.

  1. stckwatch


    hi all,

    Last year i traded 2 months on TD Ameritrade and got wash sale disallowed for more than $1M. Do you guys know what to do with this?
  2. Robert Morse

    Robert Morse Sponsor

  3. stckwatch


    My proceed is $10M and my cost basis 11.1M My net gain is $10k. Does this mean I have to pay tax on capital gain on 1M+10k?
  4. noddyboy


    Yes, welcome to the USA
  5. BMK


    Were you holding a bunch of stock on the last day of the year?
  6. Sounds like you need a good accountant because you will likely encounter serious tax trouble/audit. This is why people who actively trade file for TTS /475 elections ahead of time, one main reason is to remove wash sales for active trading- sadly this sounds like a mess on your hands, not really sure how to handle this now.
  7. what did you end up doing for this?
  8. newwurldmn


    no. Reading the 1099 can be tricky. It took me like an hour with E*TRADE tax department to understand it one year.

    Depending on how you traded and the positions you carried at the end of the year and through Jan 30th, you might have no liability and the reporting is wonky.

    easiest is to talk to an accountant or your broker. Or you can post the 1099 and someone like BMK can help you decipher it.

    it’s likely not a big deal. But it could be based on how you traded.