Broker's wash sales not calculated correctly

Discussion in 'Taxes and Accounting' started by curiousGeorge8, Sep 7, 2016.

  1. A update on the wash sales in the tax returns.

    I purchased a popular tax software for active traders. But it initially did not work out of box, as I had to manually adjust the trade records to make it work. A part of the problem is that some trades are a combination of open long and close short positions, and the software requires you to split the trade into two, sometimes into three, otherwise the software refuses to continue the calculation.

    After spending probably close to 48 hours of manually working through all the trades (I have less than 200 round-trip trades), I finally made it to work. The good news is that I pay less tax than if I use the broker's wash sales calculations (the broker's calculations are incorrect). The bad news is that I will have to spend significant much more time if I have close to four hundreds of trades or more a year in the future by using the same tax software.
     
    Last edited: Sep 25, 2016
    #11     Sep 25, 2016