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> but I’m virtually certain there’s an error with how Robinhood is calculating wash sale adjustments. Or, maybe it could be turbo tax importing the wrong info?

> but I’m virtually certain there’s an error with how Robinhood is calculating wash sale adjustments. Or, maybe it could be turbo tax importing the wrong info? IIRC they did not import the cost basis from employee purchase plan sales in my ETRADE account one year and treated it as a cost basis of 0. The trader in the article definitely needs to hire a CPA.

samspenc 6y ago
This is a well-known issue with TurboTax and how it imports ESPP cost basis. The same happens with Fidelity reports as well. But in this case, the scale (number of trades) seems to indicate this was a day trader who was frequently moving in and out of the same (or substantially similar) positions and hence not related to ESPP.
- mattnewton 6y ago
  Right, it's a totally different error, just mentioned it to illustrate that just importing your brokerage account into Turbo Tax (what the article purports the Trader did) doesn't work 100% of the time. In this case I'm not sure if it's Turbo Tax or Robinhood calculating the cost basis after wash sales, just mentioning it could be another edge case where Turbo Tax is messing it up.
radicality 6y ago
I've wasted so much time with turbotax this year I'm thinking next year to either use some other tool and do everything manually or hire a CPA. Here's one thing I had a problem with this year - Turbotax incorrectly computed gains/losses for all my accounts because it started rounding cost basis and proceeds of _every separate transaction_ to the nearest dollar, accumulating the dollar. I can't fathom why the software even bothers with any intermediate rounding. Big thread [here](https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/turbotax-early-rounding-issues-creating-large-variances-between-turbotax-produced-return-and/00/1948037/highlight/false https://ttlc.intuit.com/community/investments-and-rental-pro...).
- junar 6y ago
  For the record, other tax software does this type of rounding too. Unless you have really small lots, it shouldn't make a big difference, and I wouldn't worry about it. If you do have small lots, you can consider doing the summary method using Exception 1 (if eligible) or Exception 2 otherwise. https://www.irs.gov/instructions/i8949#idm140393400814208 https://www.irs.gov/instructions/i8949#idm140393400814208 Note that Exception 2 requires an attached statement (generally, your copy of the 1099-B). From what I've heard, some tax software supports PDF attachments, but others, like TurboTax, make you print and mail.

samspenc 6y ago

This is a well-known issue with TurboTax and how it imports ESPP cost basis. The same happens with Fidelity reports as well. But in this case, the scale (number of trades) seems to indicate this was a day trader who was frequently moving in and out of the same (or substantially similar) positions and hence not related to ESPP.

mattnewton 6y ago
Right, it's a totally different error, just mentioned it to illustrate that just importing your brokerage account into Turbo Tax (what the article purports the Trader did) doesn't work 100% of the time. In this case I'm not sure if it's Turbo Tax or Robinhood calculating the cost basis after wash sales, just mentioning it could be another edge case where Turbo Tax is messing it up.

radicality 6y ago

I've wasted so much time with turbotax this year I'm thinking next year to either use some other tool and do everything manually or hire a CPA. Here's one thing I had a problem with this year - Turbotax incorrectly computed gains/losses for all my accounts because it started rounding cost basis and proceeds of _every separate transaction_ to the nearest dollar, accumulating the dollar. I can't fathom why the software even bothers with any intermediate rounding. Big thread [here](https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/turbotax-early-rounding-issues-creating-large-variances-between-turbotax-produced-return-and/00/1948037/highlight/false https://ttlc.intuit.com/community/investments-and-rental-pro...).

junar 6y ago
For the record, other tax software does this type of rounding too. Unless you have really small lots, it shouldn't make a big difference, and I wouldn't worry about it. If you do have small lots, you can consider doing the summary method using Exception 1 (if eligible) or Exception 2 otherwise. https://www.irs.gov/instructions/i8949#idm140393400814208 https://www.irs.gov/instructions/i8949#idm140393400814208 Note that Exception 2 requires an attached statement (generally, your copy of the 1099-B). From what I've heard, some tax software supports PDF attachments, but others, like TurboTax, make you print and mail.