Question

Wash sale loss disallowed adjustment code

Forum|Forum|2 years ago
February 18, 2024
1 reply
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Adjustment code(s): Adjustment code(s) should not have an entry when a disallowed wash sale amount is entered. Remove the disallowed wash sale amount and include the adjustment here, or remove this manually entered adjustment code.

"Manually entered" adjustment code is "N". The solftware doesn't allow me to remove it, either in the "

Form 1099-B Worksheet (MORGAN STANLEY CAPITAL MGMT)" or in the Easy step.

V

vandnAuthor

I'll appreciate any help with this.

M

Mike9241

where do you see this because that's not what the 8949 instructions say?

You have a nondeductible loss from a wash sale
code W
Report the sale or exchange on Form 8949 and enter the amount of the nondeductible loss as a positive number in column (g). See the Schedule D instructions for more information about wash sales generally and Pub. 550 for more information on wash sales involving substantially similar stock or securities. If you received a Form 1099-B (or substitute statement) and the amount of nondeductible wash sale loss shown in box 1g is incorrect, enter the correct amount of the nondeductible loss as a positive number in column (g). If the amount of the nondeductible loss is less than the amount shown on Form 1099-B (or substitute statement), attach a statement explaining the difference. If no part of the loss is a nondeductible loss from a wash sale transaction, enter -0- in column (g).

so if you have a wash sale leave the code W.

I don't understand what Turbotax is saying unless the import was corrupt or incomplete.

in the 8949 instructions code N is if you are a nominee (the gain or loss belongs to someone else)

You received a Form 1099-B or 1099-S (or
substitute statement) as a nominee for the

Report the transaction on Form 8949 as you would if you
were the actual owner, but also enter any resulting gain as
a negative adjustment (in parentheses) in column (g) or any
resulting loss as a positive adjustment in column (g). As a
result of this adjustment, the amount in column (h) should
be zero.
actual owner of the property
N

V

vandnAuthor

Thanks for the reply, Mike! I imported the forms from the brokerage company and got that error message when running the Smart Check. It's not clear to me how to fix the error. I tried going to the worksheet and tried to fix it there but the software doesn't allow me to. I tried to access the entry under Easy Step (Investment Income -> Stocks -> Update -> Your investment sales summary -> Edit -> Needs Review) and then no response from TurboTax.

I would appreciate more details on how to fix this. I noticed that I am not the only one having this issue.

https://www.reddit.com/r/TurboTax/comments/1atbdjt/wash_sale_loss_disallowed_adjustment_code_not/