Support CenterWash Sales on Schedule D (1040-Individual) in SureFire
🔍 Wash Sales on Schedule D (1040-Individual) in SureFire
This article explains how wash sale losses work and what you need to enter in SureFire when reporting on Form 8949 / Schedule D (1040-Individual).
⚠️ Before You Begin
Before you report wash sale information, keep these rules in mind:
- You cannot deduct losses from wash sales unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities.
- The basis of the substantially identical property (or contract or option to acquire such property) is its cost increased by the disallowed loss (except in the case of (4) above).
📊 Step-by-Step Guide
Step 1: Check whether your loss is shown on Form 1099-B
Use this when you need to confirm whether the wash sale loss is already identified by your broker.
If you received a Form 1099-B (or substitute statement), box 5 of that form will show any nondeductible wash sale loss if:
- The stock or securities sold were covered securities (defined in the instructions for Form 8949, column (f), later), and
- The substantially identical stock or securities you bought had the same CUSIP number as the stock or securities you sold and were bought in the same account as the stock or securities you sold.
Step 2: Remember you may still have to report a wash sale even if it is not on 1099-B
Use this when you suspect a wash sale but it is not reported on your 1099-B.
However, you cannot deduct a loss from a wash sale even if it is not reported on Form 1099-B (or substitute statement). For more details on wash sales, see Pub. 550.
Step 3: Enter the wash sale transaction on Form 8949
Use this to make sure the wash sale is properly reflected on your tax forms.
Report a wash sale transaction in Part I or Part II of Form 8949 with the appropriate box checked. Complete all columns.
- Enter "W" in column (f).
- Enter as a positive number in column (g) the amount of the loss not allowed.
See the instructions for Form 8949.
📞 Still Need Help?
If you are having trouble, contact our support team:
Phone: 1-800-516-9442
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