I think I’m missing something fundamental — a slightly simplified example of
what I’m doing is provided below.
I can get the final transaction to balance but at that point
Income:US:Fidelity:PnL:Wash is back to zero. I know my brokerage is still
tracking the wash sale though and wouldn’t I want to be tracking a non-zero
value for taxes?
Colton
2021-09-07 * "FXAIX Purchase"
Assets:Investments:Taxable:IndexFunds:FXAIX 31.803 FXAIX {157.22 USD}
Assets:Investments:Cash
2021-12-10 * "FXAIX dividend reinvestment"
Assets:Investments:Taxable:IndexFunds:FXAIX 4.065 FXAIX {163.33 USD}
Assets:Investments:Cash
2022-04-08 * "FXAIX dividend reinvestment"
Assets:Investments:Taxable:IndexFunds:FXAIX 3.388 FXAIX {155.83 USD}
Assets:Investments:Cash
2022-06-16 * "FXAIX Sell"
Assets:Investments:Taxable:IndexFunds:FXAIX -31.803 FXAIX {157.22 USD} @
127.73 USD
Assets:Investments:Taxable:IndexFunds:FXAIX -4.065 FXAIX {163.33 USD}
Assets:Investments:Taxable:IndexFunds:FXAIX -3.388 FXAIX {155.83 USD}
Assets:US:Fidelity:IndexFunds:Cash 5,014.17 USD
Income:US:Fidelity:PnL 1177.79 USD ; because of the
next transaction this should be reduced by 141.90
2022-07-01 * "FXAIX dividend reinvestment" ; this caused the wash sale
Assets:Investments:Taxable:IndexFunds:FXAIX 4.812 FXAIX {162.23 USD}
Assets:Investments:Cash
2022-07-01 * "Re-adjust cost basis due to Wash Sale"
Assets:Investments:Taxable:IndexFunds:FXAIX -4.812 FXAIX {162.23 USD}
Assets:Investments:Taxable:IndexFunds:FXAIX 4.812 FXAIX {191.719 USD} ;
also suppose to propagate the date?
Income:US:Fidelity:PnL:Wash -141.90 USD ; accounting for
wash sale
2022-11-15 * "FXAIX Sell"
Assets:Investments:Taxable:IndexFunds:FXAIX -4.812 FXAIX {191.719 USD} @
138.72 USD
Assets:US:Fidelity:IndexFunds:Cash 667.52 USD ; should match cash
deposited from transaction
Income:US:Fidelity:PnL 113.13 USD ; loss from the
transaction
Income:US:Fidelity:PnL:Wash 141.90 USD ; required to
balance but results in zero'ing out PnL:Wash
> On Nov 24, 2022, at 7:43 PM, Robert Sesek <[email protected]> wrote:
>
> 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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