1)On February 23, 2012 I made my first trade in SPY for 2012. I day traded 2500 shares and made a modest profit. 2) On Dec 24, 2012 I day traded 2500 shares of SPY and made a modest profit. 3) I did not trade SPY for the entire month of January 2013 (To adhere to the 30 day rule to avoid wash sale problems-- or so I thought.) 4) Between those two days, I traded SPY actively; ending up with a small net gain (given that it is not my day job). There were of course losses during that time period 5) My broker's "Summary of 2012 Proceeds. . ." statement has disallowed a lot of losses. Enough that the resultant tax bill would be truly onerous if it is correct. I had no shares of SPY on January 1 2012 and had no shares of SPY on Dec 31, 2012. Where does the disallowed loss on wash sales go? I thought it went to the last transaction -- but my broker says otherwise.