I know what IRS Pub 550 says about wash sales, but it just is not practical, IMHO.
For the most part, my potential wash sales arise when my quarterly asset allocation adjustments might cause sales for losses within +/-30 days of reinvested dividends in mutual funds, which are automatic and for which I use the average basis.
My brokerage accounts for wash sales in mutual funds in the same account, but not for the same security across accounts. And of course, there is the potential for wash sales of the same security held in multiple brokerages.
Ostensibly, that leaves me with having to track the wash sales impact with my own records.
Is that really what people do?!
(What good are "covered security", if that's the case?)
Or do you ignore the wash sales effects, hoping that you never get audited, which is realistic, IMHO?
(I'm between tax preparers at the moment, so I have nowhere else to go to ask.)
- posted 8 months ago