One of my transactions shows a cost basis that's about $100 more than it should be, but it also shows a wash sale for the same exact amount. So even thou it doesn't affect the tax I owe, is this something that I should ask IB to fix? If I ask them, I'm concerned that they might screw up the 1099 in some other way, or that they won't correct it in time for the July 15 tax deadline. It was only 2 weeks ago that IB amended the 1099 by fixing a bunch of erroneous transactions they initially listed as noncovered securities. IB had the same error last year, but didn't bother fixing it then.
error in IB's 1099 tax document
- Thread starter newoptionstrader
- Start date
File this, it will give you until Oct 15th.
https://www.irs.gov/pub/irs-pdf/f4868.pdf
(Ignore the deal about the deadline being April 15th 2020. With the new deadline pushed to July, you have until July 15th to file the form to get the October extension.)
Was it a wash sale? Double check that it is actually incorrect. I've had issues with IB's tax statements not being correct and when I went into the details it was almost always myself that was wrong.
Thanks for the replies.
I don't believe that it's a wash sale, although it is possible that IB's system got confused because I closed this Put option at a loss and then bought the same stock few seconds later. I've had a couple of other similar transactions where I closed the put for a loss and bought stock, and they were not labeled as Wash sale. In this case, the entire loss was not labeled a Wash sale, instead it was about an extra $100 that was erroneously added to my cost basis, which would've made my loss even larger, but then it listed that extra $100 as a Wash sale. So it doesn't really affect my taxes in any way.
I don't believe that it's a wash sale, although it is possible that IB's system got confused because I closed this Put option at a loss and then bought the same stock few seconds later. I've had a couple of other similar transactions where I closed the put for a loss and bought stock, and they were not labeled as Wash sale. In this case, the entire loss was not labeled a Wash sale, instead it was about an extra $100 that was erroneously added to my cost basis, which would've made my loss even larger, but then it listed that extra $100 as a Wash sale. So it doesn't really affect my taxes in any way.
Why bother - it all comes out of the wash !
Seriously, seems logical what they do as it all adds up to zero so why be concerned and why waste their time which takes staff away from serving others.