new cost basis of wash sale

Forum|Forum|2 years ago
March 11, 2024
1 reply
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Yikes-- just discovered my first wash sales! In 2022, I had a managed account at Fidelity where 9 shares were sold at a loss ($327.60 total), and in my personal account I had bought 100 sh of the same company within 30 days.

Questions please!

I read that "The loss that occurs on a wash sale is added to the cost basis of the shares purchased that created the wash sale." Does this mean that $327.60 needs to be added to the cost basis of all 100 shares?

And if that is correct, would I still need to file an amended 2022 tax return? thx!

Not A Product Question

jtax

Employee

Did you sell the 100 shares in 2022?

If not just add the $327.60 to the basis of those shares when you sell. Keep copies of the statements/1099 showing the wash sale indication and the purchase until you sell (and then the usual 3 years after the filing date).

If you sold them in 2022 you can amend. However, you are never required to amend for a mistake. You might want to to prevent penalties or interest. However this is a small amount and might not even increase your taxes at all (capital gains can be taxed at zero percent sometimes). You also might want to amend to claim an increased refund (because your basis was higher). But it is probably not worth it for such a modest amount.

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fanfare

Employee

are you using one account or two.?

If it is in one account, the broker tracks all this for you. You do nothing.

@disusa1

jtax

Employee

I read the the post that there were two accounts: one account managed by an advisor, one a personal account. Hence the confusion, the OP hadn't realized the advisor had sold the stock.

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