Schedule D Wash Sales

[S T]

Question,
I have this client (I was hoping to be fired after 2008), but NO! guess I didn't charge enough

Anyway this t/p had over 1100 Schedule D transactions, a large porition of which were Wash Sales,

t/p Broker does little if any service in this regard, but I have all of the 2008 records and now what the Wash Sales are, and in 2009, the broker is not reflecting the cost basis to include the disallowed Wash Sales. So I am calculating. (purchase cost plus Disallowed WS)

There would have been a "VERY" large stock loss in 2008 had they not have been wash sales, so now, obviously that is being carried over to 2009.

Some of the wash sale disallowed losses were ST and some were LT, do I have to differentiate on the 2009 Schedule D (that will be a PITA)

Most of the 2008 transactions were sold on or about 11-21-08 and repurchased on 12-1-08 then sold again on or about 1-21-09.

Guess my question is do I need to reflect the original cost basis and then the allowed "now carry over disallowed Wash Amount, or just combine the cost and the disallowed amount and enter as Cost ?

Should I attach a statement something to the effect that transactions contain an original cost amount plus a disallowed wash sale amount from 2008?

I have never prepared one quite like this.

Maybe I will increase my fees and can get "fired" for 2010.

Thanks,

Sandy

[Kram BergGold]

My opinion

To me you show the 2009 sales price and date of sale and the 2008 purchase date and cost and you are all set. You act like the 2008 sale never happened. The 2008 wash sale just zeroed out the loss for 2008. It has no bearing on 2009.

[jimmcg]

Question,
I have this client (I was hoping to be fired after 2008), but NO! guess I didn't charge enough

Anyway this t/p had over 1100 Schedule D transactions, a large porition of which were Wash Sales,

t/p Broker does little if any service in this regard, but I have all of the 2008 records and now what the Wash Sales are, and in 2009, the broker is not reflecting the cost basis to include the disallowed Wash Sales. So I am calculating. (purchase cost plus Disallowed WS)

There would have been a "VERY" large stock loss in 2008 had they not have been wash sales, so now, obviously that is being carried over to 2009.

Some of the wash sale disallowed losses were ST and some were LT, do I have to differentiate on the 2009 Schedule D (that will be a PITA)

Most of the 2008 transactions were sold on or about 11-21-08 and repurchased on 12-1-08 then sold again on or about 1-21-09.

Guess my question is do I need to reflect the original cost basis and then the allowed "now carry over disallowed Wash Amount, or just combine the cost and the disallowed amount and enter as Cost ?

Should I attach a statement something to the effect that transactions contain an original cost amount plus a disallowed wash sale amount from 2008?

I have never prepared one quite like this.

Maybe I will increase my fees and can get "fired" for 2010.

Thanks,

Sandy

Disallowed loss is added to basis ..............when stock is finally sold in non wash sale transaction use new basis which includes disallowed amount. .....In effect loss is deferred until non wash sale transaction occurs.

[Davc]

Disallowed loss is added to basis ..............when stock is finally sold in non wash sale transaction use new basis which includes disallowed amount. .....In effect loss is deferred until non wash sale transaction occurs.

Agree.........