Disallowed Wash Sales and Filing with Two Different Brokerages

Forum|Forum|3 years ago
February 18, 2023
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Hello, I have a few questions. I have uploaded two different brokerage 1099 forms to Turbo Tax. I have Disallowed Wash Sales on both, however because I sold all the securities relating to those in early November od 2022 I believe they are not factored into my Net Gain/Loss and so far Turbo Tax is reflecting that in the totals. However, I may also have Disallowed Wash Sales that cross over the two brokerages as well because I bought a security at a loss and repurchased it in the other brokerage. Again though all these securities have been sold in early November 2022. My question is do I need to concern myself with these possible crossover wash sales and does Turbo Tax catch these on the 8949 from that has all the transactions when the 1099 forms from the brokerages are uploaded? Also, are the deductions as it relates to any losses like the $3k amounts automatically accounted for when these brokerage 1099 forms are updated from the brokerages? Thank you

fanfare

Employee

strictly speaking, you have to report the details of wash sales across brokerage account from your own records.

since you closed everything out, the disallowed loss was realized.

the net gain/loss from brokers is accurate.

there is nothing to do.

@PJhiker

fanfare

Employee

" because I sold all the securities relating to those in early November od 2022 I believe they are not factored into my Net Gain/Loss"

they are factored in because you no longer hold any shares of that security as of year end.

again there is nothing to do.

@PJhiker

PJhikerAuthor

Can you explain this a little further for me. So, I am right that Selling the securities in 2022 makes all disallowed wash sales realized and factored into my net gain/losses right? Do I have to do make those sales by a particular date? I have been told by the end of November so the 30 day period expires by the end of the calendar year? Also, so I am unclear on what you are saying in regards to the wash sales that may crossover the two brokerages. Are you saying I should go through all transactions to find those and report them? You said strictly speaking I should do that. Or, are you saying I am good to go and there is not need to do that? Will the IRS understand these crossover wash sales are realized and not need them reported as well?