Reply To: If your brokerage decided to not report Wash Sales…what do you do?

Home Fairmark Forum Taxation of Investments If your brokerage decided to not report Wash Sales…what do you do? Reply To: If your brokerage decided to not report Wash Sales…what do you do?

#13408
Kaye Thomas
Moderator

The company must have obtained an opinion that this particular item is not required to be reported, so they are not acting illegally. At the same time, I believe they’re allowed to provide this information voluntarily. My guess is that they determined there is some unresolved (and unresolvable) issue that makes it impossible to say with certainty how the wash sale rule applies to these instruments, and wanted to avoid the legal exposure associated with providing one answer when there’s a possibility the IRS will take a different view.