My advise: Stop trading that generates wash sales, or learn
how to negate their effect so you don't have this problem.
Next: be sure your total sales equals your 1099 B's. This
an audit flag, probably.

More: You're right, you didn't word you question very well,
but bottom line is that you can probably get out of most of
the wash sales they list because their sorftware probably
overreacts to wash sales you can eliminate for various
reasons.

ed

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I didn't word my question very well, I'm sorry.

Here's what my broker did for example:

I had total proceeds of say 50,000. They reported that
amount on the 1099. They sent me a statement along with the
1099 that listed all my transactions, which is the
information that goes on the Schedule D. For wash sales
involving short positions, instead of increasing my basis,
they decreased my proceeds. For the wash sale entry though,
they include wash amount as a positive figure under sales
price, or proceeds, as well as the negative wash amount in
the gain column. The IRS instructions don't say to put any
entry on the wash sale other than in the gain column. If I
do it that way, my proceeds won't add up to the 50k that was
reported.

My approach to this will be to list a wash sale just like my
broker even though it's not like the instructions say. I
would rather my proceeds add up than not.

Thanks for your response.

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<jeffbarber75[at]gmail.com> wrote:

- quote -

To borrow from a colleague, you're mixing apples with hand
grenades.

Whether or not you have a wash sale depends on whether you
have a loss on the sale and replacement shares.

How you treat sales commissions on your Schedule D (ignore
them or add them to basis if sales are reported gross) is a
totally different issue.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

The 1099 Schedule D says to record a wash sale by entering
"wash sale" and then wash sale amount in the gain column.
But, my broker on some trades (short sales) adjusts the
proceeds of the sale, not the basis. So, if I just enter the
wash into the gain column, my total sales price won't match
with my broker - On the transactions where they have
adjusted my proceeds, I would need to enter the wash sale
like "Wash Sale 100 (for proceeds) and 100 (for gain) for
example. That's how my broker did it on my end of year
statement. Will the IRS care if I do it on my 1099 like my
broker?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >