Wash sale disallowed losses in day trading

Discussion in 'Taxes and Accounting' started by Jzwu2017, Apr 2, 2022.

  1. S2007S

    S2007S



    Again this is absolutely true but what you fail to understand is that bu the time Mr turbo tax figures out where your wash sales are and how much worth of disallowed losses you had it's too late to make changes, the best time to see where you are with wash sales is well before February or April. Big deal that turbo tax can handle wash sales, the point here is that you don't want wash sales or disallowed losses on your 1099!!
     
    #21     Apr 3, 2022
  2. S2007S

    S2007S


    Sorry I see you mentioned 1099-B


    So how does one access a 1099-B

    I have asked for trading reports 3 times a month usually and have compared them to my 1099 and let me tell you, they were completely off, I asked the representatives and they cannot answer my questions on if the reports they provide are of 100% accuracy when it comes to wash sales.

    This is 2022 and you are telling me there isn't a simple way for a broker to provide a "mock 1099" as if it were the actual 1099 for your taxes?????


    Again this topic and wash sales needs to really be addressed, most if not many are paying taxes on fake phantom gains they never even had to begin with.
     
    #22     Apr 3, 2022
  3. Jzwu2017

    Jzwu2017

    2021 1099-B won’t be available until like Feb. 2022, which is too late.

    I think you can look at your trading history/transactions in Nov.-Dec. 2021 to see if there are any disallowed losses and trade those stocks with disallowed losses in 2021 to get rid of wash sales.
     
    #23     Apr 3, 2022
  4. Jzwu2017

    Jzwu2017

    Should it be Nov./Dec. to figure out wash sales in that year and trade again to get rid of them in the same year? Feb/April is too late for the previous year’s wash sales.
     
    #24     Apr 3, 2022
  5. Yep. Exactly. That's why you stop trading everything you've traded in December.
     
    #25     Apr 3, 2022
  6. If there's a lot of transactions take the losses this year and call it a day. Especially if there's option trades. Short term options are a gray area anyways.
     
    Last edited: Apr 3, 2022
    #26     Apr 3, 2022
  7. ph1l

    ph1l

    Something like this could help
    https://www.costbasistools.com/wash/wash.php
    upload_2022-4-3_10-29-9.png

    Or maybe this (but it sounds expensive)
    https://www.wolterskluwer.com/en/solutions/corporate-actions-taxability-management/basispro
     
    #27     Apr 3, 2022
  8. Jzwu2017

    Jzwu2017

    I think I figured out my wash sale issue on my 1099-B. In Dec. 2021 I traded 870 shares of TSLA and there were some losses. In Jan. 2022 I traded 2500 shares of TSLA.

    Therefore, many of my Dec. 2021 TSLA losses are considered as wash sales so they are disallowed in 2021 and are adjusted to the cost basis of my Jan. 2022 TSLA trades.
     
    #28     Apr 7, 2022
    S-Trader likes this.