To make an entry of a Partial Wash Sale in the TaxACT program you must create two separate Forms 1099-B in the program. First you would determine the amount of the total loss and also how much of that loss should be allowed to be deducted and how much should be treated as a wash sale.

Once you have calculated this split you would use that ratio to split the sales proceeds and purchase price (basis) amounts and then enter them each on their own form. On the transaction that is allowed to be deducted you would not check the wash sale box. On the other transaction you would check the wash sale box so that the amount of that loss would be offset on Schedule D.

When entering the description on each Form 1099-B, split the number of shares based on the ratio you used to split the sales proceeds and purchase price.

For example, if you purchased 30 shares of stock at $60 per share and later sold it for $50 per share, but then bought back 20 shares, you paid $1800 and sold for $1500 for a total loss of $300. Of this $300 only $100 would be allowed to be deducted and $200 would be marked as a wash sale. Two-thirds of the total loss is wash sale so you would split the 30 share sale: 20 shares marked as wash sale and 10 shares allowed to be deducted.

To enter both Forms 1099-B in the TaxACT program when only part of the sale is considered a Wash Sale:

1. (Online) log into your TaxACT Online return or (Desktop) start your TaxACT Desktop program and Click on the Q&A button in the toolbar below the menu
2. Click on the Federal Q&A tab
3. Click Investment Income to expand the category and then Click Gain or loss on sale of investments
4. Click Capital gain or loss (Form 1099-B)
5. Click Add to create a new copy of the form or Click Review to review a form already created
6. When you have completed the entries for the part of the sale not considered to be a wash sale, you will be taken back to the screen ‘Investment Sales – Summary’
7. Again Click Add to create a new copy of the form or Click Review to review a form already created
8. Complete the entries for the part of the sale considered to be a wash sale and this time indicate this is a wash sale on the screen ‘Investment Income – Wash Sale’

Note that only if the entries made in the program indicate a loss on the sale will you see the screen ‘Investment Income – Wash Sale’ where you can indicate if this was a wash sale.

Related Links:

• Wash Sale Definition and Entry
• Capital Gains Tax
• Cost Basis
• How to import 1099-B data into TaxACT (new for 2009)
• Schedule D – Capital Gains and Losses