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I had my first ever wash sale in 2010 ... I accidently got stopped out on a position for a tiny loss, and then bought it right back.

I studied up on how to handle it, and think I paid the correct taxes ... but a couple of questions came up.

(1) I followed the instructions my tax software gave for entering a wash sale ... which was to enter the first sale, and then to enter a second sale with the same dates ... but with the proceeds and cost amounts reversed ... in order to zero out the loss.

But the printed Schedule D did not note the transactions as a “wash sale” like I thought you were supposed to do. And this method added an extra sales proceeds amount to my total ... so that the gross proceeds on my return don’t match the 1099-B.

Will the IRS computers understand that this is a wash sale and disregard the extra sales amount ... or might I have some ‘splaining to do?

(2) I ultimately sold the position permanently ... still in 2010. In my third entry I used the original purchase date and the final sales date ... with the original loss added to the cost basis ... as instructed (I hope).

Here’s my question. When you do a final sale in the same year as a wash sale, do you even have to enter the wash sale ... since the taxes come out the same either way? Although I guess your reported sales proceeds wouldn’t match the 1099-B gross proceeds ... but mine doesn’t anyway.

Just curious ... thanks!
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