Question

Multiple brockerage accounts and wash sales

Forum|Forum|5 years ago
April 20, 2021
1 reply
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I have Multiples brokerage accounts and the number of transactions exceeds TT limits so I can not download them.

TT allows for entering sales section totals manually but the problem is I have a large amount of wash sales and since the number of transactions is also large, it's impossible to reconcile the adjustments by hand across the accounts.

The only thing I could think of is to go over all of my 1099-B's and anywhere that a loss was 'allowed' just assume it is 'disallowed' and add it to my total wash sale adjustment where by I mean the total amount of loses that are disallowed. My thinking is that this way I won't be uncounting my disallowed loses (wash sale adjustments) and I may be overpaying the IRS but I won't be underpaying them.

So basically when entering the sales section totals I am adding all the proceeds across the accounts and entering this number as my proceeds and doing the same with the cost basis and wash sale adjustment (also adjusting the wash sales as I mentioned above.),

I will be attaching my 1099-B of course.

Will this be acceptable to the IRS?

TurboTax Premier Online

M

Mike9241

there's nothing in the tax laws that allows you to do what you intend. your real risk is in the year you deduct those nonexistent wash sale losses. the IRS could disallow them and then you would have to pay the additional taxes penalties and interest. under some conditions rather than having a 3-year limit to adjust your return, you may be giving the IRS 6 years. also if caught, it may be past the date to amend 2020, so those wash sale losses can be lost forever.

and downloading, even if possible, would do no good because TurboTax does not check for wash sales.