Personally if I have questions like this I call the broker's tax department and ask detailed questions, which they will answer, regarding exactly how and why specific transactions are reported the way they are.
True and I have, but about 99.999% of the time they work around the questions you have saying that the questions I have should be brought up to a tax professional as they are NOT allowed to give any kind of tax advice or tax answers.
As you can see how complex wash sales are you would think they would tweak them, there are literally thousands of posts online talking about wash sales and most of the ones who know exactly how they work always say that wash sales are no threat at all as long as you close the position out prior to the new year. I can post some of them here. They sound like they are a walk in the park on a spring sunny day. Just sell them and watch the disallowed losses get swept far away like they never happened
I guess I thought you bought back the shares and currently own them. An explanation of how this can happen could be something like https://ttlc.intuit.com/community/i...-sale-losses/01/1386111/highlight/true#M48444
Oh here yaaaaaaaa go. Took all of 23 seconds to find this glorious reddit forum all about wash sales And check out the title....that title saysssssss it ALLLLLLLL
From the forums As long as you fully exit the position before the end of the year then it won't matter in the end. Wash sale rules don't completely prevent realizing losses, they just postpone the realization of those losses to a later date. If you close your positions out some time later, the loss will be realized then. If that is still within the same calendar year, then it's all added up together. The only way you get in trouble is by trying to realize a loss in December then buying back in in January, thus moving a loss from one tax year to another. If you close out in November and then refrain from touching that stock through the end of the year then you'll be fine. Obligatory cranky note: wash sale rules are among the many reasons that actively trading stocks, especially a single stock, can be a terrible idea. Quit playing and stick to boring stuff.
And another one If the trader exits wash sale holdings by year end, the wash sales are a big nothing, and do not affect your losses recognized for the current tax year. The best time to exit a wash sale holding entirely is by NOVEMBER, and to STAY OUT OF the tickers all of DECEMBER. (This December non-activity in the same tickers prevents you from reviving the wash sale in January by accident) Otherwise, if you hold through the end of the year, the wash sale loss is carried into the following tax year, via the revised wash-sale basis of the "new" stock holding, and the tax loss is recognized only upon closing out the wash sale stock,
I just started a new thread about wash sale disallowed losses in day trading. Since I closed out all my positions before the end of 2021, why are there still disallowed losses in my 1099-B?
I had the same issue with the concept of wash sales, but i found the stock costs are not correct without the wash sale adjustment. So if you need to check your true gain/loss go thru every transactions as when you did them, not using the cost basis on 1099-B.