I have a client that has a 300,000-capital loss but on the same has a 400,000-wash sale. Does that negate the loss and does he have a gain of 100,000
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Wash sales negate losses.
Is this all on one stock or is this the totals on the consolidated 1099?
Did he sell a stock w/ $300k loss and then buy $400k of the same stock?
Or did he sell a bunch of stocks that included a $400 wash sale?
Some brokers adjust the gain/loss for the wash, some don't. You have to look at the detail included with the consolidated 1099 to determine what the broker reported."Taxation is the price we pay for failing to build a civilized society." ~ Mark Skousen -
Yes it was the same stock and on the same line of the reportComment
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I've had plenty of clients with wash sales, some inadvertent (DRIP programs with loss sales in the near time area).
The cumulative Form 1099-B information should plainly show a "W" which gets transferred to Form 8949. Some software will separate those sales with / without a code w, where you might encounter TWO Forms 8979 with "Code D" sales. If you just attach a brokerage summary (ies) as a PDF file, there will only be one 8949 for each category.
The tax software tales care of the math.
As for the OP, those numbers sound a bit. . .confusing. At the very least the $300k loss would be eliminated, with resulting cost basis adjustments rattling around.Comment
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