Message Font: Serif | Sans-Serif
No. of Recommendations: 2
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?

They probably won't care that it's a wash sale. And don't worry about reporting MORE gross proceeds than is shown on your 1099. The IRS computers only look for someone reporting LESS than what is on the 1099.

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?

We often point that out here. Doing all the work of properly reporting a wash sale only matters when you dispose of the stock again in a later tax year OR when the second sale moves the loss from short term to long term.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.