How do I report a wash sale in an individual return?
A wash sale occurs when you sell or otherwise dispose of stock or securities (including a contract or option to acquire or sell stock or securities) at a loss and, within 30 days before or after the sale or disposition, you
- buy substantially identical stock or securities,
- acquire substantially identical stock or securities in a fully taxable trade,
- enter into a contract or option to acquire substantially identical stock or securities, or
- acquire substantially identical stock or securities for your individual retirement arrangement (IRA) or Roth IRA.
Open the 8949 screen (the Income tab). Enter all information as needed regarding the sale. If the wash sale was reported in box 1g, enter it there and the 8949 will be adjusted for the disallowed loss. If the non-deductible loss was not reported on box 1g, you can select code W in the adjustments section for the first Form 8949 adjustment code, and enter the adjustment amount.
With either entry, the software will indicate that it is a wash sale in column (f) of the 8949 and adjust for the disallowed loss.
For more information see the instructions for Schedule D: Schedule D Instructions.