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Manually Entering a Wash Sale Deferral

 
 
Please review the lesson: Manually Entering Deferred Wash Sale Losses in our Online Tutorial for a demonstration of this procedure.
 
 
 
To manually enter a wash sale deferred from last year:
 
  • Follow the instructions Manually Entering a Trade
     
  • Make sure you enter a Date that matches an open transaction, either held open from the previous tax year or open in January of the tax year you are working on.
     
  • Enter a "W" in the O/C (open/close) column to indicate a wash sale deferral.
     
  • Enter an "L" or "S" in the L/S column to match the open transaction the deferral is attached to.
     
  • Enter the number of shares for this wash sale in the Sh/Contr column. The wash sale deferral must be less than or equal to the number of shares of the open transaction that this is attached to.
     
  • Enter zero for the Price and Commission.
     
  • Enter a negative amount in the Amount column. This is the actual wash sale loss being deferred.
     
  • You may choose to use the Holding Date column, although this is not required. The Holding Date allows TradeLog to account for the holding date of the wash sale when determining the final holding period of the trade the wash sale is attached to. For example: a short-term trade may need to be changed to long-term because of the wash sale attached to it. If you are confident that the wash sale deferral you are entering will not cause the attached trade to become long-term, then you may choose not to enter the Holding Date. See the topic: Display Wash Sale Holding Date for more information about this field.
     
  • Remember to hit the Enter key twice to save your record.
     
Example:
 
In the example below we have entered a "W" record for a wash sale deferral attached to shares purchased on 12/12/2012. Note the following key points:
  • The Date, L/S, and Ticker fields match for both records.
  • While 100 shares were purchased on 12/12/2012, the wash sale was for only 50 shares, therefore we have entered the appropriate amount in the Sh/Contr field.
  • In this example we entered a Holding Date to account for the holding period of the 50 shares that are a wash sale (which was 172 days). The Holding Date entered is therefore 172 days prior to the date of 12/12/2012. Once the open shares are closed, TradeLog will use the holding date to determine if they should be short-term or long-term. See the topic: Display Wash Sale Holding Date for more information.