Question

Wash Sale Loss Disallowed Adjustment Code Not working

Forum|Forum|2 years ago
February 17, 2024
3 replies
0 views

Form 1099-B Worksheet (MORGAN STANLEY CAPITAL MGMT) -- Capital Asset Sales Wksht (1):

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.

I could use some assistance fixing this error. I've tried entering the adjustment code W should I be using a different code? When I removed the adjustment code N is auto populated by TurboTax.

S

stanljl

same issue here and not able to edit or change cost code auto populated by turbotax to fix the issue with their software. Then amount involved is not rounded down to under 1 dollar either. interesting is this code is called manually entered according to turbotax and deleting should fix it but the software won't let you delete it seems like a software problem hope we can get a work around that won't add a huge amount of time on our part to filing process.

S

stanljl

So I deleted the amount disallowed in the 2 fields and entered 0.00 and the form allowed it.

R

riosjAuthor

My 1099-B looks as follows:

[1d] Proceeds $1695.78
[1e] Cost or other Basis $1714.21
[N/A] Total Gain/(Loss) ($18.43)
[1g] Wash Sale Loss Disallowed $18.43

When I tried using code W I get the above error. Will an update fix this?

According to the IRS instructions are to put a W: https://www.irs.gov/instructions/i8949

fanfare

Employee

"According to the IRS instructions are to put a W"

With tax software, W is a special case.

It will ask you for any disallowed loss and then put the code for you.

N is another separate case, the column (h) should be zero.

the software should handle it unless you are entering amounts by hand.

R

riosjAuthor

Right so I entered the disallowed loss from the 1099-B form and it populated N but when I try to file it returns the above error same goes for W. So what should be entered?