TurboTax software creating wrong Gain/Loss on Stock sales

Forum|Forum|3 years ago
February 15, 2023
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When importing my documents from Webull, I immediately saw a variance of Net Gain/Loss. Looking at the long term sales, that was correct. Then going through the short term, I noticed some sales of my AAPL calls not being properly calculated in the Gain/Loss section which throws off my total net Gain/Loss.

Example: 2 AAPL Call 12/16/22. Date acquired 12/12/22, Date Sold 12/13/22. SALE PROCEEDS 69.90 COST BASIS 26.08.

**Those numbers are correct. Total gain would be 43.82. HOWEVER, It was being reported as 46.52. Clicking the edit button and going through the options/list of that sale, TurboTax had a washsale rule apply for 2.70. Looking at the actual 1099B form, there is no wash sale attributed to that sale.

Not sure if this is on TurboTax's side of their software, or the data pulled from WeBull. It is always recommended to look over some of the details of your brokerage forms.

TurboTax Home & Biz Windows

Best answer by JosephS1

While maybe not the ideal solution, if you have the paper copy of your account you can enter the data manually as there are workarounds for all the information necessary to enter.

The 1099-B should guide you on what the treatment will be for including the trades on your return. Generally your 1099-B should show the caption for the type of trade that it was - Short-term covered with basis reported to the IRS, Short-term not covered, Long-term covered, Long-term not covered. Each section of the 1099-B needs to be entered separately. You are allowed to combine transactions as one provided they are from the SAME grouping. You enter the transactions in the Investment section of TurboTax as follows:

On the left side of your TurboTax screen, click on Wages & Income
Scroll down to "Investments & Savings" and click show more or edit/add
Click on "Add Investments"
Best thing to do here in my opinion is to click on "Enter a different way"
Click on the box for Stocks, Bonds, Mutual Funds and then continue
Enter the brokerage name at the top and the account number and Payer's EIN if you so choose (not required)
Answer the questions on the next page, which are normally, but not always, no, no (in this case even if it is more), no, and yes.
You can answer one by one and enter each group separately; if you answer yes you will will need to upload a pdf of your statement.
If your grouping has multiple sales, when you are asked the date acquired, click on something other than a date and choose various
Follow the remaining instructions and choices. Whichever way you answer you will receive additional instructions.

Maybe not ideal as everyone would prefer to just have the upload perfect but if you are in a rush to file your return the above should assist.

@mprev

@spq838

mprev

Same issue here. When imported it threw random wash sale amounts into TurboTax that weren’t on my Webull 1099-B. I’m having to edit 425 transactions. I posted a small capital loss (-$500ish) last year in my Webull account but with the incorrect glitch with wrong wash sale amounts, it says I had a $10k capital gain!

This is a giant pain to edit each transaction but will be worth it to wipeout the incorrect 10k in income. Webull and TurboTax need to fix this!

holeemolee

I noticed the same. Wash sale for 1 entry is duplicated in multiple different rows (totally unrelated stocks) changing the total gain/loss amount.

Some items have wash sale disallowed even bigger than the original loss amount, turning a loss into a gain.

When can we expect the fix?

mprev

I'm not sure. I wish they would say as surely thousands are affected. With my luck, the fix will come once I've finished manually editing my 415 transactions. I'm at 200 now so probably in the next few days.