Where in Turbotax 2022 to add the increased cost basis from the previous wash sale to the cost basis of the second stock sale?

Forum|Forum|3 years ago
April 3, 2023
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I have two employee RSU transactions, both were sold at a loss. The first transaction is considered wash sale as I was given the second batch of RSU 3 days prior to selling the first batch. Since the gain (buying) of second batch is within 30 days of selling the first batch, the first transaction is considered wash sale. (Please correct if I am wrong)

Now Form 1099-B from E-Trade does not show the cost basis of RSU, so I need to calculate it myself.

I understand that since the first transaction is wash sale, the loss is not deductible but I can add the loss (let's say -$5,000) to the cost basis of the second RSU that I sold.

My question is, where in TurboTax 2022 I can add the increased cost basis ($5,000) from the first sale to the cost basis of the second RSU sale? Thank you.

JohnB5677

Since the gain (buying) of second batch is within 30 days of selling the first batch, the first transaction is considered wash sale.

Yes, the first transaction is a "Wash Sale".

Form 1099-B from E-Trade does not show the cost basis of RSU, so I need to calculate it myself.

That is correct.

I understand that since the first transaction is wash sale, the loss is not deductible, but I can add the loss (let's say -$5,000) to the cost basis of the second RSU that I sold.

Again, you are correct. Provided you sold the second batch of RSU, and didn't purchase anything new for 30 days prior, or after, you can adjust the cost basis.

My question is, where in TurboTax 2022 I can add the increased cost basis ($5,000) from the first sale to the cost basis of the second RSU sale?

I'm not sure if you're on the Desktop, or Online, but I'll give the Online answer. The Desktop is very similar.

On sidebar

Select Federal
Wages & Income
Select Wages and Salaries, or Revisit
Scroll to Retirement Plans and Social Security
Select the type of income.
1. IRA, 401(k), Pension Plan Withdrawals (1099-R)
2. Social Security (SSA-1099, RRB-1099)
3. Canadian Registered Pension Income
At this point you can edit an existing document of [Add another 1099-R]
If a new 1099-R continue to Let's import your tax info
You can import by selecting your provider.
1. Follow the instructions.
—---- Or to post manually —-------
[Change how I enter my form]
[Type it Myself]
Post your information exactly as it shows on your 1099-B
On the input screen, just below Box1e - Cost or other basis.

There is a check box The cost basis is incorrect or missing on my 1099‑B

Select the box and make the adjustment.

If this does not completely answer your question, please contact us again and provide some additional details.

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netoria76Author

Thank you for the response. I have TurboTax Premier 2022 Win desktop version.

I have trouble following your steps. I've located 1099-R on the system as below:

After clicking on Retirement Plans and Social Security I get this page:

If I selected No it then asked me whether I take any disaster contributions. If I selected Yes and Continue it asked me to import 1099-R from broker. However, trying to import from E-Trade wasn't successful as it says no 1099-R form can be found. I also checked directly my E-Trade account and only 1099-B is available. This is where I am stuck.

Thank you.

JohnB5677

We can work with this:

First download and print the 1099-R

From where you are now select Yes.
On the next screen, on the left I'll type it myself - Continue
Select Form 1099-R, withdrawal of money from a 401-K, retirement plan, pension, IRA etc. - Continue
Post the information directly off of the 1099-R.
The line numbers will match up.
Continue through the rest of the interview.

If this does not completely answer your question, please contact us again and provide some additional details.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"