I have a question about the permanent wash sale disallowances between a taxable trading account and an IRA. I screwed up and created a permanent disallowed situation and I need to make sure that my understanding of this situation is correct for my taxes. I’m going to give two scenarios below just to make sure that I am understanding the concept correctly.

1.     Stock 1: I made $25,000 in capital gains. Stock 2 I created a permanent disallowed sale that had $10,000 in losses. I will now have to declare the full $25,000 as capital gains and not $15,000 due to that error, correct?

2.    Stock 1:  Sold for $30,000 loss. Stocks 2-5 sold for $20,000 in losses but those losses are permanently disallowed due to buying the same stocks in my IRA within 30 days. Stock 6 – I sold for a $50,000 gain. Knowing this, I have to declare $20,000 in capital gains for that tax year, correct?