Has anyone run into actual issues with the IRS disallowing losses for wash sales?
Or additionally being audited for not reporting 1258 transactions?
I just reported what Schwab gave me to report last year and then…. This year learned about losses being disallowed for wash sales and about the 1258 tax laws.
Am I going to get audited??
Posted by nonuts4meonIG
2 Comments
You know the IRS already has those transactions from the same clearing house, right?? They’re just waiting for you to make good on paper….
you’re probably fine, especially if you just reported what schwab put on your 1099. wash sales are usually already adjusted on the 1099, the only time people run into trouble is when they have multiple brokers or trade the same ticker across accounts. 1258 is pretty niche and most retail traders don’t even trigger it unless they’re in specific contracts, so chances are it doesn’t apply to you. IRS audits aren’t random for small stuff like this, they look for big mismatches or missing income, not honest reporting based on broker docs, practical move: going forward track trades across accounts and be mindful of 30-day windows, and if it’s bothering you, a quick CPA consult is way cheaper than stressing about it