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Schedule D Reporting and Trade Accounting

Are you being hung out to dry on wash sales? Most investors and day traders could be in a loss position for the year and still owe taxes! Don’t fall prey to IRS scrutiny due to inacurate 1099 data from your broker.

What exactly is a wash sale and how do I reconcile them when preparing my Schedule D? A wash sale occurs when there is a loss on the sale or disposition of stock or option; the first thing the IRS will look at is if a substantially similar stock or option was purchased 30 days before or 30 days after that sale or disposition. If there was a purchase of that stock within that time frame, the loss that was incurred will be added on to the purchase price of that stock thus washing out or becoming a wash sale. Because the loss is added to your basis, you will eventually be able to take the loss but talk about complicated. Recordkeeping on wash sales alone could become a nightmare when preparing your own Schedule D.

Our professionals have years of experience, providing accurate capital gain/loss and wash sale accounting.

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