What are WASH SALES?

Tax question involving wash sales?

• Ok, im gonna use basic numbers to make this easy to understand. My 1099 looks like this 140,000 gross proceed, 100,000 cost basis. Here is where it gets tricky. I have a number, lets just say 20,000 under "wash sale loss disallowed" My 1099 form shows a net capital gain of 40k + the wash sale amount of 20k, for a total of 60k in net capital gains. But when I import from scottrade to turbo tax, it only shows the 40k proceeds and doesnt seem to do anything with the wash sale disallowed number that seems to be added to my net capital gains on my 1099. My question is how do I incorporate this into turbo tax and is this number supposed to be added to the net capital gains? Im assuming the net capital gain number on my 1099 from scottrade is the correct number @ 60k and that incorporates the wash sales already.

• Answer:

  there is no recognition of a profit or gain of a wash sale,, that's what a 'wash' does, it has no effect