The wash sales
trap potentially applies to any disqualifying disposition in which an employee, within 30 days--before or after the stock sale--repurchases company shares.
Losses from wash sales
will carryover to the next identical stock purchase until gains eliminate the loss or until the stock is sold outside of the 61-day period.
Accounting systems will have to track the securities that triggered the wash sale
until the point where they are sold, and will have to make complex calculations that track the adjusted basis and the holding period.
FundTax relieves financial institutions from manually tracking wash sales
while increasing efficiency and accuracy.
Not only can the Wash Sale
Rule prevent you from taking a loss, but failing to account for wash sales
can result in costly errors in cost basis calculations for both the stock sold at a loss and the security that triggered the wash sale
," said Conlon.
-- GainsKeeper's FundTax provides full tracking of wash sale
deferrals and reversals, holding period carry-over, and basis adjustment.
These solutions calculate, track and report corporate actions, cost basis, capital gains and losses, and wash sales
Calculating wash sales
on short and long trades, on unequal numbers of shares, across "substantially identical" securities such as options and underlying stocks, and across multiple brokerage accounts is a major headache for anyone trying to prepare their trader tax return.
Maxit reduces the complexity of the challenging investment tax decision process by analyzing actionable cost basis scenarios, simplifying tax reporting, eliminating the need for research on corporate actions and identifying wash sales
We get countless questions from people struggling to comply with the wash sale
rule and other tax laws for capital gains," says Kaye Thomas, author of the book "Capital Gains, Minimal Taxes" and founder of Fairmark Press.
Every merger, split, or other corporate action changes a share's cost basis, as does any wash sales
that may have been generated during the course of trading the same security," Routh said.
The new functionality and improved reporting capabilities enable State Street's customers to perform tax-efficient lot selection on lot-level holdings adjusted for wash sales