How to report a wash sale in Lacerte

Follow these steps:

1. Go to the Dispositions screen:
   • Individual module: Screen 17
   • Partnership module: Screen 19
   • Corporate module: Screen 15
   • S Corporate module: Screen 23
   • Fiduciary module: Screen 22
   • Exempt module: Screen 24
2. Enter the applicable information regarding the sale (Description of property, Date acquired, Date sold, Sales price, Cost or other basis).
3. Scroll down to the Schedule D section.
4. Enter Wash sale amount disallowed (-1 to disallow all) (code 101).

The amounts flow to Form 8949 with the nondeductible loss as a positive amount in column g, and a disposition code W in column f.

The wash portion of an entered transaction is the amount of loss being excluded. The amount entered will be treated as a gain.

Why is an adjustment showing on Schedule D line 15 for a Individual return?

If the Wash Sale has an Accrued Market Discount on the same entry screen this will result in an Adjustment on Schedule D line 15.

Wash sale input is to be used for dispositions with a loss in order to disallow a portion of the loss. Accrued Market Discount is used for disposition with gains. As a result, entering a wash sale amount for a disposition that is a gain, or an Accrued Market Discount for a disposition that is a loss causes unexpected results on Schedule D.

• If a wash sale is present and the overall disposition is a gain a new disposition activity would be needed for the Wash Sale amounts to be entered on.
• If a wash sale is present and the overall disposition is a loss a new disposition is needed for the Accrued Market Discount amounts to be entered on.