Disallowed Tax (wash sale) in TT

[nun]

Does anyone know how to deal with a wash sale in TT. I have "Disallowed Gains" on my Vanguard statement and I enter those into the wash sale box in TT, but when I get to the page where I enter my summary cost basis and proceeds the gain doesn't have the wash gain subtracted. I ended up putting in an adjusted proceeds so the gain agreed with the "Allowed Gain" on the vanguard statement, but it seems like a bit of a fudge.

 

[FIRE'd@51]

A wash sale results in a disallowed loss, not a disallowed gain.

 

[nun]

Yes sorry!

 

[Texas Proud]

Not looking at the program.... but I do remember whenever you had a actual loss it would ask you if it was a wash or not...

Are you putting in to much info in one line? IOW, did you make buys and sells during the year and you are looking at the totals. If so, then you will need to put in each sale and then the sales with losses will ask the question.

I would not adjust the basis just in case I was audited. If I could not get it correct putting in the individual sales I would add another line with a 'gain' to offset the wash loss and label it 'wash sale loss not allowed' or something... that way you have full disclosure on the return and if audited they can not come back on you.


OR, if the loss is very small, I would just take it and not worry about it... I have done that in the past.... but I mean small...

 

[grasshopper]

I am with Texas Proud, I haven't started TT yet this year, but it doesn't ask about a wash sale until you are close to the end of your sale info. And than it asks about the 30 day rule and any dividends you have received within a period of time.

 

[Nords]

A wash sale results in a disallowed loss, not a disallowed gain.

IRS error messages we'll never see: "I'm sorry, that's a disallowed gain and cannot be taxed. Please try again next year."

 

[Animorph]

I believe TT will show the nominal loss as it would be without the wash problem on one line of the Schedule D and then follow it with the disallowed loss on the next line. Check the actual form to make sure you aren't accounting for the disallowed loss twice, which you may be doing.

 

[nun]

I solved the problem by using the spreadsheet option to enter the sales. There's a column for the wash amount and the maths gets done correctly so that my allowed losses agree with my Vanguard cost statement. The "easy option" where you get stepped through each sale turns out to be far more complicated and either has errors or I just couldn't figure it out correctly.

Still all done now apart from entering final revisions to the REIT numbers.