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Peter --- I appreciate your responses. So help me understand a bit more. How can both the December statement and the 1099 be correctly reporting, yet differing entirely on the holding period and the basis used, for the stock in question.

The December activity statement had adjusted for the holding period to reflect the dates of the original holdings of the stock in question (NLY, if it matters) and also had adjusted the basis, carrying forward the disallowed (wash) sale. For what it's worth, so had all of the intervening monthly activity reports shown those adjustments for the stock sitting there in his account.

Then the 1099 comes along and treats it as a short term sale, not at all adjusting basis or holding period.

They can't both be correct, can they? And if so, how?

Either way, I fail to understand how asking for a definitive confirmation of accuracy is the same as asking for advice? It's just asking for an explanation of fact. "There is a correct way to report these transactions: does this comply?"

What am I missing?
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