Follow these steps:
- Go to the Dispositions screen:
- Individual module: Screen 17
- Partnership module: Screen 19
- Corporate module: Screen 15
- S Corporate module: Screen 23
- Fiduciary module: Screen 22
- Exempt module: Screen 24
- Enter the applicable information regarding the sale (Description of property, Date acquired, Date sold, Sales price, Cost or other basis).
- Scroll down to the Schedule D section.
- Enter Wash sale amount disallowed (-1 to disallow all) (code 101).
The amounts flow to Form 8949 with the nondeductible loss as a positive amount in column g, and a disposition code W in column f.
The wash portion of an entered transaction is the amount of loss being excluded. The amount entered will be treated as a gain.
Why is an adjustment showing on Schedule D line 15 for a Individual return?
If the Wash Sale has an Accrued Market Discount on the same entry screen this will result in an Adjustment on Schedule D line 15.
Wash sale input is to be used for dispositions with a loss in order to disallow a portion of the loss. Accrued Market Discount is used for disposition with gains. As a result, entering a wash sale amount for a disposition that is a gain, or an Accrued Market Discount for a disposition that is a loss causes unexpected results on Schedule D.
- If a wash sale is present and the overall disposition is a gain a new disposition asset would be needed for the Wash Sale amounts to be entered on.
- If a wash sale is present and the overall disposition is a loss a new disposition is needed for the Accrued Market Discount amounts to be entered on.
