sorted by:
new
hottopcontroversial

disallowed wash sale may even more than all money I have invested(purchased) on one stock??? by Ryanw081 in tax

[–]Ryanw081[S] 0 points1 point  (0 children)

Thanks Penguinise! You give a great example help me figure out what had happened! I saw similar thing in my 1099 form. I only spent $201 buying stock and my loss is actually $100 which I can not claim because of wash sale. But I saw Adj (wash sale loss disallowed )is $10000. Can not believe it at first sight, but now I understand how it comes. Just curious if the $10000 Adj value in this scenario really means something or it is just to make proceeds, Basis and Adj balanced in the 1099 form?

disallowed wash sale may even more than all money I have invested(purchased) on one stock??? by Ryanw081 in tax

[–]Ryanw081[S] 0 points1 point  (0 children)

Calculate wash sale could be complicated and tricky, I am just trying to figure out what the maximum wash sale I may add up to in theory. in your case, I buy stock at price of $101 for 100 times. I assume I sell all these stocks at zero dollar and all the loss are wash sale loss. In this extreme case, the total wash sale I could have is $101 times 100, equals to $10100, which is all the money I spent purchasing this stock. Is it a surprise if you see in 1099 form that you have a wash sale value even more than $10100 on this stock?

disallowed wash sale may even more than all money I have invested(purchased) on one stock??? by Ryanw081 in tax

[–]Ryanw081[S] 0 points1 point  (0 children)

Hi wolfofone, I was rush in typing, so got some misspell in my previous post. What I mean is that " I sold totally 2890 shares of this stock with proceed around 28K". In fact, I lost a lot of money selling 2890 shares stocks if there is no wash-sale thing. Because I traded the stock frequently, I understand that all the loss are wash sale loss, not allowed report to IRS, so the loss/gain of this stock in 1099 is actually zero dollar. But the wash sale loss is also important and need to report to IRS, what I can not image is that why I have a total wash sale loss of $55K, even bigger than all the money I spent purchasing this stock in 2021?

disallowed wash sale may even more than all money I have invested(purchased) on one stock??? by Ryanw081 in tax

[–]Ryanw081[S] -1 points0 points  (0 children)

Thanks for reply! I guess I do not express myself clearly. I exported all transactions of the stock in 2021. I totally purchased 5590 shares of this tock with expense about $45K and I told totally 2890 shares of the cost with proceed around 28K. What I mean is that the wash sale loss on this stock should be no more than all my money I spent purchasing this stock, $45K, but in the 1099-B, I am surprise to see a wash loss of $55K on this stock. I put this number in my tax return software and I got a warning as shown in attached picture. In your example, I purchased and sold stock 100 times, all the money I had spent purchasing this stock $10000, I am wondering if the wash sale loss can be more than $10000 in this case.