What are WASH SALES?

Schedule D - Wash sales; Should I file an amendment?

• I efiled with tax slayer. All has been well until this year. I did some active trading in 2008 which has resulted in capital loss and wash sales. I used schedule D to list the transactions but I didn't take into account wash sales or uneven transactions of the same stock. My question is even if my capital loss is still the same number and my refund doesn't change should I file an amendment with Schedule D that illustrates the wash sales, etc. Also is there a way to do wash sales manually if you have numerous wash sales or should i just let a professional do this.

• Answer:

  Yes, you should file an amendment. It could affect your taxes in future years (such as when you sell the stock that you purchased this year). You can manually report all the wash sales on Schedule D. You may be able to find software that does it automatically. If it is too complicated for you to report on Schedule D manually and you cannot find software that does it correctly, then use a professional.