Here is my simplified wash sale scenario.
Let's say I traded only 2 stocks last year:
- XYZ for a total of $500 wash sale loss.
- ABC for a total $1000 gain.
Txns for XYZ:
- 05/28/2019 BUY 100 shares for total $2000
- 09/02/2020 SELL 100 shares for total $1000
- 09/15/2020 BUY 100 shares for total $500
- 11/02/2020 SELL 100 shares for total $1000
Txns for stock ABC:
- 07/01/2019 BUY 10 shares for total $1000
- 11/18/2020 SELL 10 shares for total $2000
If I disregard the wash sale rule, my tax gains for the year should be +500$.
But my broker reports a wash sale disallowed in field 1g on 1099-B and sets the loss for XYZ to the year at 0. Here is the report
1a. 1b 1c 1d. 1e. 1g Wash Sale Disallowed Gain or Loss XYZ 100 05/28/19 09/02/20 1000 2000 **1000** **0.00**
And now I have to pay taxes on +1000$ gains for the year instead of just +500.
What should I do?