How TurboTax takes care of Wash Sale

A wash sale occurs when you sell stock at a loss and within 30 days before or after the sale you purchase substantially identical stcok. I'll talk more about it other time.

When you key in each sale (transaction) on your 1099-B, TurboTax will prompt the following question:

- did you buy or reinvest dividends in substantially identical stocks between mm/dd/yy and mm/dd/yy?

- did you sell all of the stocks you acquired btw mm/dd/yy and mm/dd/yy in this sale?

Based on your answers to the above questions, TurboTax will figure out for you how much your loss falls under the rules for wash sales. any losses from wash sale are not deductible. Say you have $5000 loss from wash sale.

TurboTax then gives you "money-saver tip": keep a record of this $5000 loss. When you sell the new shares you purchased, you can add it to your cost basis so your taxable gain will be less, or your loss even more.

Tax needs planning. So does Wash sale.

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with TurboTax, you can easily overwrite anything you want to.

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TurboTax is just a tool operated by tax filer.

the challenge of using tax software is how to key in your tax info, which really needs a detailed knowledge of TAX.

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Go for TurboTax Premium if you get 1099-B or you need to file form 1040 w/ Sch D.