Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
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.

Rule Your Retirement Home Fool
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.
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.