March 7, 2012
Wash Sales Compliance is intended to foster discussion of wash sales processing in the context of the broker cost basis reporting requirements enacted under the Emergency Economic Stabilization Act of 2008 (Pub L 110-343).
While the basics of the wash sales rules are fairly widely understood, a full analysis reveals significant complexity when applied to real world investment activity. In addition, there are numerous ambiguities in the relevant current code (Sec 1091) and regulations (Reg 1.1091-1, Reg 1.6045-1, and Reg 1.6045A-1) pertaining to the calculation and reporting of wash sales. Existing guidance is light, and as made abundantly clear by the results of tax year 2011 reporting, numerous problems result from varying interpretations.
This forum invites commentary from knowledgeable industry participants with the aim of promoting correct and consistent wash sales processing and ultimately more accurate and useful broker reporting. Please see the About page for more information.