Wash Sales, Basis Adjustments and Groups Details View
Posted by Henry Gage on 11 March 2010 08:27 PM
Regarding: Wash Sales, Basis Adjustments and Groups Details View

The trade has no basis adjustment on either the short sale or the buy to cover.

Turning off Wash sales changes all of the amounts, and is not an option for tax reporting anyway. The tax report tab, Display View: Wash Wale Event Summary, does show a basis adjustment of 110.24, which equals 157.16 - 46.92; however, the tax reports tab does not show any wash sale adjustment. Why? Shouldn't it say Wash Adjustment -110.24 instead of simply 46.92?

Thanks for sharing a detailed example. This makes our analysis easier because we can look at the data.

You raise an excellent point that we should consider for a future enhancement in the form of additional reports to help clarify the details. In this situation the trade we are focused on does in fact have a basis adjustment, not a wash adjustment. Please review the attached screen shots.

Wash adjustments consist of two part: A Basis Adjustment and a Wash Sale Adjustment. The basis adjustment becomes part of a new position. You can review Reports Screen, Gain/Loss Detail report for more insight.

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