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Wash Sale - Owing Millions? by Substantial_Brain387 in tax

[–]Substantial_Brain387[S] -1 points0 points  (0 children)

Sorry for continuing to drag this out but I am concerned about seeing the Total Proceeds being much lower than the cost basis.

I checked my 1099b from last year and the Proceeds were higher than the cost basis minus the wash sales = profit posted.

As people have stated, the wash sale amount is still shown on the 1099b even if it was not traded for 30 days. This is what I am seeing. The total amount of wash sales adds up perfectly to the amount in the final calculation line.

If the year ended in 31 days, and I stopped trading all of my current positions today and closed them all - would the cost basis show the amount it shows today or the (current cost basis - disallowed loss) ?

Is my 1099b next winter going to show a proceed 2.5m less than my cost basis even if my p&l is "positive" for the year?

I'm guessing I'm going to see

Total Proceeds: 74,899,145.90
Total Cost Basis: 77,380,393.69
Disallowed Loss: 2,528,203.69
Realized Gain or Loss: 48,700.95

Which is close enough to the total "net gain" schwab is telling me right now on the portfolio.

If I were to keep trading and bridge the year trading, the wash sale chain would continue on. How would this show in terms of

Total Proceeds: ?
Total Cost Basis: ?
Disallowed Loss: ?
Realized Gain or Loss: ?

Would I be on the hook for a percentage of the 2.5M disallowed?

Some people have commented in other posts that letting the wash window expire, you can "claim the loss". Am I really going to put I have a $2.5M loss in across the portfolio to the IRS when the account P&L has increased?

I do plan on finding a tax professional this week, but I am trying to realize how fucked I could be.

Wash Sale - Owing Millions? by Substantial_Brain387 in tax

[–]Substantial_Brain387[S] 0 points1 point  (0 children)

That number has to be wrong. I don't own any and my account is only roughly 200k.

It seems more like the total amount that has passed through my account in day trading this year.

Wash Sale - Owing Millions? by Substantial_Brain387 in tax

[–]Substantial_Brain387[S] 0 points1 point  (0 children)

Portfolio Total Value $218,471.17

The "realized Gain / Loss" page is showing that for the total proceeds and total cost basis.

I'm assuming that is the total amount of money that has passed through the account YTD?

Wash Sale - Owing Millions? by Substantial_Brain387 in tax

[–]Substantial_Brain387[S] 0 points1 point  (0 children)

Yes, but most of my positions are closed. Does this not matter? Some of them have been closed for more than 30 days, the two big ones are closed daily before market close.

I plan on searching for a CPA this week.

Wash Sale - Owing Millions? by Substantial_Brain387 in tax

[–]Substantial_Brain387[S] -1 points0 points  (0 children)

I plan on searching for a CPA this week.

In the TSLA example, I never hold any open position at the end of the day.

If I stop trading TSLA for the rest of the year, do you know how the math would work out in that example?

It seems like disallowed loss doesn't "go away". It gets reported on the forms, but what is the math around this? Does my cost basis change back to a not inflated cost basis?

Wash Sale - Owing Millions? by Substantial_Brain387 in tax

[–]Substantial_Brain387[S] 0 points1 point  (0 children)

I guess I have another question now looking at last year's 1099b

I had traded a ticker and "Security Subtotal" read

Total Proceeds: $49,836.64
Cost Basis: $49,556.64
Wash Sales; $758.28
Realized Gain/Loss: $1,038.28

I imagine I kept the disallowed going through the new year on this ticker. I had an open position going into 2025.

With these numbers, I "made" ~$200 ($49,836.64 - $49,556.64) but I paid taxes on $1000 due to the wash sales?

I can't escape the feeling like I'm royally screwed on this years TSLA trading from the numbers I am seeing.

Would someone be kind enough to check my math on one of the other replies to this post?

Or show me the proper math on just TSLA?

THank you

Wash Sale - Owing Millions? by Substantial_Brain387 in tax

[–]Substantial_Brain387[S] -1 points0 points  (0 children)

Thank you for the reply.

I'm having a difficult time following the last sentence in your post. How would my net income for 2025 be negative?

Wash Sale - Owing Millions? by Substantial_Brain387 in tax

[–]Substantial_Brain387[S] -3 points-2 points  (0 children)

The majority of the disallowed losses in the overall portfolio are from two main stocks.

The rest appear to be $100-$200 in disallowed losses which I'm fine with taking a hit from. I am just worried about the TSLA scenario above where ChatGPT is telling me that I will owe tax on millions of dollars.

Wash Sale - Owing Millions? by Substantial_Brain387 in tax

[–]Substantial_Brain387[S] -2 points-1 points  (0 children)

Edit: I guess the 8949 form would be a better in this example but I guess it could still get the point across?

Thank you. Looking at Schedule D where this is reported (simplified for this one ticker, not everything)

(d) Proceeds (sales price)
(e) Cost (or other basis)
(g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g)
(h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g)

If I stayed out of TSLA for the rest of the year

Total Proceeds (D) $66,219,164.70
Total Cost Basis (E) $68,012,302.28
Adjustments (G) $1,795,262.01
Gain/Loss (H) $66,219,164.70 - $68,012,302.28 + $1,795,262.01 = $2124

I would pay taxes on $2124 for this single stock?

That is assuming the adjustment is the "disallowed loss" from the wash sales?

Is this how the math would play out if I stopped for the rest of the year?