Pitfalls of Common Tax Software Programs

There are a few programs out there who claim to handle wash sales properly, but can they handle all three of the simple examples as previously in this topic? 

One of the most popular tax software programs on the market is TurboTax™.  However, TurboTax™ has a very rudimentary wash sale capability in that you can flag a loss trade as a wash sale and it will create a wash sale line item on the schedule d.  It will also adjust the cost basis of the very next trade in the list. 

But what if the next trade is NOT the trade that caused the wash sale? What if the trade that caused the wash sale is for less shares than the loss trade? TurboTax would adjust for the full amount of the loss, when only a portion of the loss should be adjusted for!

This makes using TurboTax to handle your gains and losses from trading including wash sale adjustments quite useless.

NOTICE: Any wash sales or schedule d software that claims to import their gains and losses into TurboTax™ without first adjusting for unequal share trades may be seriously overstating your wash sale losses!

Who wants to take that chance?