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My 1099 has a slew of transactions flagged as "wash sale, loss not allowed".

Although I've since sold everything and gone months without repurchasing those stocks, it's not clear to me when/how to realize those short term losses.


Some questions.

1. What exactly are you seeing on the 1099-B? Not on any supplemental information, but the 1099-B itself. What boxes have information?

2. Do you understand the wash sale rules and how you treat the disallowed loss? Briefly, the loss is added to the basis of the replacement shares, thus increasing your loss/decreasing your gain when you sell those shares. Details are in Pub 550.

Since you disposed of everything and didn't repurchase within 30 days of your last sale all losses will be recognized on your 2011 1040. We just have to figure out how you enter things, and that will depend on what's on the 1099-B.

Phil
Rule Your Retirement Home Fool
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