Wash Sale

[JON]

1099-B reporting all the sales are detailed and all were short term.- Proceeds are box 1d; Cost or other basis box 1e; wash sale loss disallowed box 1g; gain/loss (next calculation!!! The gain/ loss is proceeds minus cost or other basis, there is no use of the Wash Sale. This is Vanguard Brokerage. If I enter everything from the boxes on Ultra Tax obviously it takes the wash sale amount and increase the gain/decrease the loss. Does anyone now why Vanguard has this? did they already adjust the basis by the wash sale? Are they going to be correcting? Help!! Is Vanguard Brokerage right or is Ultra Tax??

[ATSMAN]

I have found Vanguard and Fidelity calculate the 1099-B correctly 99% of the time. I have to constantly remind taxpayers with wash sales what it means and why and tell them that if they are trading themselves they need to watch out. It is my understanding that the TD Ameritrade platform warns them of a wash sale and also produces a report so that they can keep track of wash sale disallowances.

[JON]

Here is the 1099-B on the statement and sent to the IRS:
There are five transactions in the same stock:

here are the total sent to the IRS Total proceeds: $100,000
Total Costs $ 110,000
Wash Sales $ 24,000
What are the entries you would make to record those into your software?

[Burke]

Sounds like you need to input each of the five transactions individually and the wash sale adjustments for the appropriate sales. There must have been some net gains on some of them. I have a worksheet in my input for 8949 where this is done, using Code W.

[JON]

I agree with this first part above - the rest you are making it harder than it should be. I do not know of any other wash sale put on a 1099-B that had the numbers in the fashion that Vanguard did. It was already reviewed with broker and he agreed it was misleading, but like he said you do not report the gain column to the IRS, it is a combination of numbers.