I book wash sales similar to that example. Though I do adjust the
disallowed loss into a Wash account, rather than directly into PnL.
What cost basis lot are you using to reduce the inventory when you sell the
shares? You need to use the adjusted cost basis for those shares. Here is a
hypothetical sale based on the example in irs-simple-example-1.beancount:
2014-01-01 * "Sell adjusted lots"
Assets:Investments:STOCK -100 STOCK {10.5 USD} @ 11.00 USD ;
Adjusted cost basis shares
Assets:Investments:Cash 1,100.00 USD
Income:Investments:PnL -50.00 USD ; PnL from the adjusted cost
basis
Conceptually, the transactions are:
- Buy stock
- Sell stock at a loss
- Dividend reinvestment
- Cost basis adjustment of the reinvested dividend shares by the loss amount
- Sell reinvested shares, reducing the position by the lot with adjusted
cost basis
If you are still having trouble, it would be helpful for you to post the
transactions you are having an issue with.
- Robert
On Thursday, November 24, 2022 at 4:55:46 PM UTC-5 [email protected]
wrote:
> I've been struggling with the *right way* to account for wash sales. I've
> been reading these:
> - https://github.com/beancount/beanlabs/tree/master/beanlabs/washsales
> -
> https://beancount.github.io/docs/how_inventories_work.html#augmentations-vs-reductions
>
> My situation is pretty simple:
> - bought some stock
> - a bit later sold some lots at a loss
> - automatic dividend reinvestment got me (oops) and this is what triggered
> the wash sale
> - few months later I sell the lot that triggered the wash sales
>
> I can adjust the cost basis of the lot that triggered the wash sale but
> the problem is that the new cost basis throws off my later transaction when
> I sell the wash sale lots.
>
> My case is exactly like this one:
>
> https://github.com/beancount/beanlabs/blob/master/beanlabs/washsales/irs-simple-example-1.beancount
>
> Except that after the last transaction there is one more transaction where
> I sold the lot with the adjusted cost basis and I can't get this to balance
> (even if I use an account like "Income:Investments:PnL:Wash"
>
> Any tips appreciated!
>
> Colton
>
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