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?

#14125
Kaye Thomas
Moderator

True in practice if not in theory. You’re legally required to report wash sales even if the broker failed to do so. Yet IRS audit activity in this area is nonexistent as far as I can tell, so we’re effectively on the honor system. Anyway, chances are that wash sale reporting on these types of transactions would have little or no effect on the amount you owe in taxes. If that’s true, working out how to report wash sales would just be goosing ghosts.