Question

How to adjust the cost basis for replacement shares which came up after wash sale

Forum|Forum|7 years ago
June 3, 2019
1 reply
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I have a series of wash sales & associated replacement sales.

I have manually entered the wash sales by filling in the 1g with wash sale value disallowed.

Now, if I am not wrong, I can recover this loss when I sell the replacement shares (which I did).

Should I just add the deferred loss to the cost basis of the replacement shares?

What if I have multiple replacement shares & those are wash sales too?

TurboTax Premier Online

fanfare

Employee

you are on the right track. If your replacement shares are a wash, keep going applying the rule.

Your broker will calculate wash sales for you, and I spent a lot of time trying to understand what they did with my account i.e selection of replacement shares.

In the end I just reported the wash sales as shown on my 1099-B.

S

sri2Author

Thank for your response. I did talk to my broker & they confirmed your point!

Now I have one more question.
My 1099-B did all the magic to adjust the cost basis for replacement shares & reported my final gain/loss as a loss. However, when I import my 1099-B to turbotax, I only see the gains added to my income but the loss isnt covered (shown as 0 even for replacement shares). I looked into the specific wash sales entries & see that they do have 1g column added (for wash sale) but none of those deferred losses are accounted in the final income.

Do I have to specifically do anything to mention that the sale is a wash sale + replacement sale?