Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
Wash Sales Entry on 8949
Posted by: dnana2005, March 25, 2012 03:36PM
I need help regarding how to enter wash sales on 8949, this is what my 8949 entry looks like currently, I wanted to know which way is correct

I bought the share for $1200 and sold it for $1000 on the same day. A loss of $200. The next day I bought the same share for $1000 and sold it for $800, another loss of $200 for a total loss of $400.

Method A

Desc Code AcqDate SellDate SellPrice Cost Adjustments

ShareS W 10/10/2011 10/10/2011 1000 1000 (200)
ShareS 10/11/2011 10/11/2011 800 1200


Method B

Desc Code AcqDate SellDate SellPrice Cost Adjustments

ShareS W 10/10/2011 10/10/2011 1000 1200 (200)
ShareS 10/11/2011 10/11/2011 800 1000

Or some other method not shown above.

Thanks for your time and help.



Re: Wash Sales Entry on 8949
Posted by: Art, March 26, 2012 02:51AM
Without looking at this in any detail, the wash sale adjusment is a positive number, It makes the gain larger.

Re: Wash Sales Entry on 8949
Posted by: Moesbie, March 26, 2012 06:12AM
My broker prepared a 8949 and this is how it is preparing things based on your example.

Desc Code AcqDate SellDate SellPrice Cost Adjustments

ShareS 10/10/2011 10/10/2011 1000 1200
ShareS W 10/10/2011 10/10/2011 0 0 200
ShareS 10/11/2011 10/11/2011 800 1200

Whether that is accurate though I hope someone else will chime in.

I noticed the 8949 they prepared only had box B selected even though the 1099-B they provided does include basis for stock transactions. The 1099-B was devoid of options transactions though. Yet the 8949 does include options trades. I suspect I should redo the stocks on box A 8949 and the options on a box C 8949. Does that sound right?

BTW, will the purchase and sale of a call and put of the same underlying, strike, and expiration within 31 days of each other, but not at the same time (straddle?), cause a wash sale if one of the trades was a loss?

Pardon me for high-jacking the thread, but it seemed related.

Re: Wash Sales Entry on 8949
Posted by: cpw, March 26, 2012 03:30PM
Options don't get the 8949 treatment until 2012.

Re: Wash Sales Entry on 8949
Posted by: Moesbie, March 26, 2012 07:32PM
cpw,
When you say it doesn't get 8949 treatment do we not have to report options trades at all?

Re: Wash Sales Entry on 8949
Posted by: RichC, March 26, 2012 08:15PM
He means that as has been for decades (if not forever), options are not reported on 1099-B. Starting in 2012 (I thought it was 2013 but easily could be wrong), options will be reported on 1099-B for the first time.

However, even though options sales haven't been reported on 1099-B, the taxpayer most certainly has to report them on Schedule D (and now Form 8949).



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