77 pages of gobbledegook instructions for that one form, which references half a dozen other forms, at least. No wonder our tax code is so FUBAR.
No matter how many calls you make to the brokerage houses and ask multiple times you will receive the same exact information that they cannot give you any advice since they are not tax professionals and they do not offer any help in deciding how to get rid of a wash sales. Trust me I have spent countless hours researching and calling and I have gotten absolutely no where. I then ask my tax professional and receive absolutely zero help, they said the same thing you did. That they have to go off the 1099 no matter what. What I once again don't understand is the fact you mentioned that the trades were closed out months before December 2021 and never traded again. I did the same exact thing you did and still had wash sales. I really cannot comprehend why this issue isn't being addressed and being looked into, I mean I see literally thousands of posts on wash sales all over the forums and the answers to these wash sales seem as easy as making a ham sandwich yet everything you apply to making the wash disappear DOES NOT WORK.
Right because the average person will understand that entire tax form. If you know about form 550 then why not chime in and assist in how wash sales can be eliminated in the most simplest way because as you can see following the rules of selling off a stock prior to the new year and not trading it 30 days after does not apply for some odd reason.
Brokers do NOT help in any wash sale questions. How do I know? I have called multiple brokers and have spent countless hours talking to each and every one of them. THEY DO NOT ASSIST IN ANSWERING ANY QUESTIONS ABOUT WASH SALES. THEY TELL YOU TO CONTACT YOUR TAX PREPARER WHO ALSO HASNT A CLUE BECAUSE THEY GO STRAIGHT TO THE 1099.
So yes its not the wash sales but the DISALLOWED losses that matter. This is what is the downfall of the 1099, How do you get rid of the disallowed losses? Can you not get rid of them since they are "DISALLOWED" ??? Like I mentioned I had disallowed losses that I thought wouldn't be disallowed since I sold off stocks in December and didn't trade them until the new year 30 days + later.
By the way even ask for current trading reports from your broker that are up to date and see the wash sales and disallowed losses as of.your first quarter trading. I can tell you they will NOT match your 1099. I looked over my last report from 2021 and compared it to my 1099 and they were totally off. If no one believes it do it yourself. Call your broker and ask for your trading report from 2021 and compare it to your 1099. It will NOT match. Any CPAs here know why??
Guys, don’t fret about wash sales or disallowed losses. Wash sales are just a label put on those trades defined as wash sales by IRS. They don’t affect your taxes in any way. Disallowed losses do affect your taxes if they are across the end of the tax year, i.e., Dec. - Jan. However, any disallowed losses in the previous tax year will be added to the next year’s cost basis. Therefore, they don’t matter either in the long run. It’s just how taxes are calculated and paid per tax year. I just did my 2021 tax return. Everyone is fine except that I have some disallowed losses in 2021 tax year (in Dec. 2021) that I will get in 2022 as the cost basis will be adjusted up accordingly.