I see a deferred loss of 315000 in my etrade account for 2020 though it shows a short term gain of 50000. I did some day trading and I know that deferred loss is due to the wash sale rule but can someone explain or help me understand it better? Is the total gain of 50k net gain for the year? Do i need to account for deferred losses also in the tax filing (whatever limit IRS allows)? Thanks in advance.
Wash sale is a painful thing many new day traders get caught into thinking they can take a loss and buy same shares again . You cannot take those losses . Don’t mean to scare your but Your taxable capital gain in 2020 could be 315+50 , although to be completely sure your 1099 b needs to be looked at . DM me if you want me to connect you to my tax person .
In my 1099-B, My realized loss is 261000 with a wash sale loss disallowed of 315000. That indicates a gain of 52k for tax purposes? As I understand, We should not account for the losses for tax purpose due to wash sale which makes your realized profits look larger. Correct? How do you get away with wash sales 61 days are way too long to wait for same stock especially if you day trade.
I that case, your taxable gain is 52k for tax purpose .
Umm, how did you manage to lose money in this market?! Literally every single stock is up.
Honestly i made money. I lost some duting covid time but gained it back. Not sure why it is showing as losses that too 260k. My portfolio is worth only 50-60k.
Wash rule only applies to losses. You owe taxes on net gains.
Oh, you owe $315k, and they usually only accept Bitcoin. I’ll send you the address to pay.
WTF are you talking about? You scared the shit out of me.
Maybe you shouldn't be day trading with these amounts of money?