Wash Sales Question

S

S2007S

So it's tax time and I had some disallowed losses which I'm sure some in here have had.

I have a question that no one seems to know. I have researched it online, but can barely find a simple direct answer to the question which is a very very very straightforward question........

Question:

Can I avoid Wash sales and see the disallowed losses become actual Losses on my 1099 if I sell everything that has a wash sale in my account before December 31st and never buy the same or similar equity until January 31st the following year?


So for example if I racked up $5,000 in wash sales trading Apple stock in 2021 and still held the stock into 2022 I would see on my 1099 $5,000 in disallowed losses which means I could NOT apply these to actual losses. At this point its 2022 and you received your 1099 which now is too late to make any changes.

Now, could those $5,000 in disallowed losses become actual losses if I had just sold the shares all together by December 31st and not have bought them back until February 2022? ?

Do you simply eliminate all wash sales that become disallowed losses by selling the stock off completely before the next calendar year?
 
I'm not an expert on this. I'm not sure you can rely on tax advice here. GreenTraderTax are the experts on this. https://greentradertax.com/frequently-asked-questions-faqs-on-wash-sale-losses/?highlight=wash sales. It might be worth a consultation with them.

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S2007S said:
So it's tax time and I had some disallowed losses which I'm sure some in here have had.

I have a question that no one seems to know. I have researched it online, but can barely find a simple direct answer to the question which is a very very very straightforward question........

Question:

Can I avoid Wash sales and see the disallowed losses become actual Losses on my 1099 if I sell everything that has a wash sale in my account before December 31st and never buy the same or similar equity until January 31st the following year?


So for example if I racked up $5,000 in wash sales trading Apple stock in 2021 and still held the stock into 2022 I would see on my 1099 $5,000 in disallowed losses which means I could NOT apply these to actual losses. At this point its 2022 and you received your 1099 which now is too late to make any changes.

Now, could those $5,000 in disallowed losses become actual losses if I had just sold the shares all together by December 31st and not have bought them back until February 2022? ?

Do you simply eliminate all wash sales that become disallowed losses by selling the stock off completely before the next calendar year?
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Technically yes, unless the IRS thinks you are cheating by trading something similar with a different ticker. Like options on the same thing.
 
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