Scrumpy,
My second ... BUY really is $40,000 ($45,000 less $5,000 loss from previous sale). Finally, the last sale for $42,500 results in a "wash-sale" gain of $2,500 ($42,500- $40,000).
Your second ... BUY really is $50,000 adjusted cost basis ($45,000 plus $5,000 loss from previous sale). Finally, the last sale for $42,500 results in a ST loss of $7500 ($50,000- $42,500). As you know commissions and other expenses increase this ST loss. For your example, if you were to account for each round-trip trade separately, the ST loss will be the same and your taxes will be the same.
In short, this number could balloon regardless of loss or gain.
I can't guess what you mean by "balloon".
... and I don't see TurboTax making this calculation
Are you expecting TurboTax to "match" trades to automatically do wash sale accounting? Do they explicitly say it will? I would doubt it. Manual calculation and entry is probably required.
what they say is true
What is it they say?
Regards,
Ron |
