Wash Sale Box 1g on 1099-B but sold at gain

[Gretel]

Never saw this before. Stock sold at gain but box 1g shows an amount for disallowed wash sale loss. I assume this means that stock is sold now for which a loss restriction applied in an earlier year, and this loss now needs to be added to basis. This is what I gather from explanations from others. What I do not know is if this was added already in the basis reported (MorganStanley) or not. Maybe I need to call them? Maybe I am totally wrong?

[Gretel]

This is what I did but my software deducted it from the basis. So I tried to understand the underlying transaction since it does not make any sense to me that there should be a loss for a washsale if the sale is at a gain. I will call the broker.

[Burke]

It is correct that a non-deductible loss from a wash sale is added to the basis of the underlying stock, which technically defers the loss until it is subsequently sold at a later date. You will have to check with M/S to determine if they did this basis adjustment automatically when the wash sale loss occurred, or whether you need to adjust it now. I can't explain why your software deducted it from the basis.

[Lion]

Are you looking at the detail in the Gain/Loss statement? A given stock may have sold a few different batches during 2017, some at losses where wash sales applied and others at gains, netting a gain for that particular stock. Call the broker.

[Gene V]

Gretel,
I use TDAmeritrade and my 1099-B include the wash sales in the cost column and a separate column that say wash sale, when I input the information in my software, I use the total cost that is showed on the 1099-B and my software has separate input for the wash sale, then on the 8949 in column (e) it shows the cost as showed on the 1099-B and column (f) code W and column (g)the wash sale amount-- then on column (h) it calculates the correct amount. This amount correlates with my spread sheet.

[Gretel]

Thanks for all comments, I found the input box and the software increases the gain, which indicates that Lion's assumption is correct. The broker wasn't of much help. Most of all I wanted to understand the whole thing. My client never keeps the monthly statements, so I couldn't verify.