Reply To: 1099-B on individual stocks and wash sale reporting

Home Fairmark Forum Taxation of Investments 1099-B on individual stocks and wash sale reporting Reply To: 1099-B on individual stocks and wash sale reporting

#2294
kaneohe
Participant

……….Other income and Adjustments to Income………I’m more used to bank bonuses being reported as interest, however……….so check to see how it is reported. If it is misc income then you could use Sch 1.

Kaye…….does the IRS only care about totals or might it be helpful
(or not) to help them figure out where the #s come from?

A possible alternative to the #2 answer is to have 2 lines for line 8a)………one would be the sum of all securities as shown on the 1099B so IRS can match that number w/ the 1099B and then a 2nd line that subtracts out the sum of the 2 wash sales.
Then do the 2 wash sales on the 8949 and bring the total back to Sch D
line 8b. That way neither you nor IRS has to deal with w/ 13 separate transactions. It would be helpful if the wash sale lines are labeled as such so IRS folks could figure out what you are doing.

I believe a similar approach is sometimes recommended e.g. if you have aa 1099-INT that is not all yours. You enter the full amount on one line and then subtract the nominee interest on another line. That helps others trying to figure out where (at least) some of the numbers come from.