Question

wash sale impact on net gains

Forum|Forum|2 years ago
April 1, 2024
1 reply
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I am trying to understand if how should i report wash sale

for a hypothetical scenario

net proceed is 10k

cost basis is 8k

gain: 2k

wash sale adjustment is 1.5k

adjusted gain: 3.5k

Turbo reporting adjusted gain as 3.5k.

how do I adjust my net gain in the context of wash sales

rjs

If you have a gain, it's not a wash sale. There can only be a wash sale when you have a loss. You do not adjust gain for a wash sale, you adjust a loss for a wash sale. Does the 1099-B from your brokerage show a "wash sale loss disallowed" in box 1g, or an adjustment code W?

You can find detailed information about wash sales at the following link. It will probably answer all of your questions.

The Wash Sale Rule