Wash sale loss disallowed.... skip December?

[S2007S]

I just started a new thread about wash sale disallowed losses in day trading. Since I closed out all my positions before the end of 2021, why are there still disallowed losses in my 1099-B?

Thank you. Thank you Thank you.

This is why this needs to be addressed very very very loudly. Glad you brought this back up. I too sold out of 2 trades where I thought my disallowed losses wouldn't show and like magic they were there, and trying to find an answer is literally impossible. No one has a clue how wash sales work. The ones who do claim its as simple as selling off any stocks that have wash sales by end of year. Not trading then for 30 days and like that the wash sales just disappear, that's completely false information!!!
Again no one has any idea how to get rid of wash sales!!!

 

[Jzwu2017]

I had the same issue with the concept of wash sales, but i found the stock costs are not correct without the wash sale adjustment. So if you need to check your true gain/loss go thru every transactions as when you did them, not using the cost basis on 1099-B.

Can you elaborate more on this?

 

[Jzwu2017]

Thank you. Thank you Thank you.

This is why this needs to be addressed very very very loudly. Glad you brought this back up. I too sold out of 2 trades where I thought my disallowed losses wouldn't show and like magic they were there, and trying to find an answer is literally impossible. No one has a clue how wash sales work. The ones who do claim its as simple as selling off any stocks that have wash sales by end of year. Not trading then for 30 days and like that the wash sales just disappear, that's completely false information!!!
Again no one has any idea how to get rid of wash sales!!!

In my other thread, I said it’s because I traded the same stocks in Jan. 2022 (within 30 days of Dec. 2021 trades) to trigger the wash sale rule. Does that make sense?

 

[s trader]

Just use the wash sale adjustment as provided to report your tax. I believe your accountant would do that.
If you want to double check your gain, print out all the transactions in activities and go thru them one by one. But that would a pain.
Or just know your account balance at 1/1 and at 12/31 then estimate your gain taking into account deposit and withdrawal.

 

[S2007S]

In my other thread, I said it’s because I traded the same stocks in Jan. 2092 (within 30 days of Dec. 2021 trades) to trigger the wash sale rule. Does that make sense?

OK that makes sense yea, but in my case I sold off positions in mid and late December and DID NOT trade them at all until February and still had disallowed losses on both trades!

 

[Jzwu2017]

Do you know why?

 

[S2007S]

Just use the wash sale adjustment as provided to report your tax. I believe your accountant would do that.
If you want to double check your gain, print out all the transactions in activities and go thru them one by one. But that would a pain.
Or just know your account balance at 1/1 and at 12/31 then estimate your gain taking into account deposit and withdrawal.

Those that make maybe 37 trades you can say that to but when you are trading hundreds and thousands of times a year its basically impossible!! There is no way possible you can figure that out on your own.

I know someone who traded over $10 million worth of stock in 2021, do you think they could Itemize over a million dollars worth of disallowed losses???????

Not even a cpa would know, and if he did he would be charging literally tens of thousands of dollars to break down every disallowed loss possible!!

 

[S2007S]

Do you know why?

I haven't a clue. I have asked the representatives and they won't say anything. They only tell you that they don't offer tax advice!!!

And according to the forums I have read, they claim that wash sales aren't an issue and not to worry about them as long as you sell off the position and don't trade it for 30 days, I claim that as completely false information!!

 

[S2007S]

Every article I read has zero to no advice on how to eliminate wash sales. The only advice once again is that don't trade the stock for 30 days, that or buy a completely different equity.

 

[S2007S]

Here is more advice from am article.....


If you own an individual stock that experienced a loss, you can avoid a wash sale by making an additional purchase of the stock and then waiting 31 days to sell those shares that have a loss.


But what if you already obtained a wash sale and have disallowed losses, how do you now eliminate the disallowed losses ??? How do disallowed losses become actual losses??