Fractional Share Wash Sale at Fidelity

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Drew31
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Fractional Share Wash Sale at Fidelity

Post by Drew31 »

No question, just a PSA since it took me awhile today trying to understand why I had a $1.20 wash sale after a tax loss harvest of ITOT this week. It's really a minor annoyance, but just in case anyone else runs into it and wonders what happened....

I had fractional shares on my ITOT and when Fidelity places the sell order, they do it in 2 blocks/orders. Selling the full share amount, and then selling the partial share amount. So let's say a block of 100 shares and then a block of .343 shares to use actual numbers.

Well, I had purchased ITOT in early May so I was still within the 30 day window. So when that 2nd sale of .343 shares went through, it triggered the wash sale rule since I had already sold at loss and bought within 30 days.

So - I would say a reminder to be extra cautious if TLH partial shares, but that $1.20 will really just be a rounding error on my '22 tax return. Still caused me quite a bit of confusion today trying to understand where it was coming from.
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anon_investor
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Re: Fractional Share Wash Sale at Fidelity

Post by anon_investor »

Drew31 wrote: Sat May 21, 2022 9:06 pm No question, just a PSA since it took me awhile today trying to understand why I had a $1.20 wash sale after a tax loss harvest of ITOT this week. It's really a minor annoyance, but just in case anyone else runs into it and wonders what happened....

I had fractional shares on my ITOT and when Fidelity places the sell order, they do it in 2 blocks/orders. Selling the full share amount, and then selling the partial share amount. So let's say a block of 100 shares and then a block of .343 shares to use actual numbers.

Well, I had purchased ITOT in early May so I was still within the 30 day window. So when that 2nd sale of .343 shares went through, it triggered the wash sale rule since I had already sold at loss and bought within 30 days.

So - I would say a reminder to be extra cautious if TLH partial shares, but that $1.20 will really just be a rounding error on my '22 tax return. Still caused me quite a bit of confusion today trying to understand where it was coming from.
I think it all ultimately nets out on your 1099-B from Fidelity at the end of the year.
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Drew31
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Re: Fractional Share Wash Sale at Fidelity

Post by Drew31 »

I don't currently plan on re-buying into ITOT as I just switched my total market holding. I've already TLH'd enough for the next several years so no need to really do any more unless things get downright nuts.

Not a big deal, it just took me awhile to back in to the source of where it came from.
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Re: Fractional Share Wash Sale at Fidelity

Post by lazynovice »

Drew31 wrote: Sat May 21, 2022 9:06 pm …..
Well, I had purchased ITOT in early May so I was still within the 30 day window. So when that 2nd sale of .343 shares went through, it triggered the wash sale rule since I had already sold at loss and bought within 30 days…..
Didn’t you sell the May purchase at the same time? If so, you just had an irrelevant wash sale. The full loss should have been recognized once you sold all shares bought in the last 30 days. It’s covered in the wiki.

https://www.bogleheads.org/wiki/Wash_sale
livesoft
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Re: Fractional Share Wash Sale at Fidelity

Post by livesoft »

So you get to book the $1.20 loss on your tax return despite the wash sale. Is that not obvious in your Fidelity account?

Posting screen shots here might be helpful to others. Example from earlier this month: viewtopic.php?t=376777

Just another example of "How I Learned to Stop Worrying and Love the Wash Sale"
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FactualFran
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Re: Fractional Share Wash Sale at Fidelity

Post by FactualFran »

It seems odd that none of the sale of the whole number of shares was a wash sale and all of the sale of the fractional number of shares was a wash sale.

Was the sale of the whole number of shares not at a loss?

Were the transactions like: step 1, buy whole number of shares; step 2, reinvest dividend in additional shares (resulting in the fractional number of share); step 3, sell the shares within 30 days of step 2?
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Re: Fractional Share Wash Sale at Fidelity

Post by lazynovice »

FactualFran wrote: Sun May 22, 2022 12:51 pm It seems odd that none of the sale of the whole number of shares was a wash sale and all of the sale of the fractional number of shares was a wash sale.

Was the sale of the whole number of shares not at a loss?

Were the transactions like: step 1, buy whole number of shares; step 2, reinvest dividend in additional shares (resulting in the fractional number of share); step 3, sell the shares within 30 days of step 2?
I’d wager the May lots were sold. The issue is that the “loss” was incurred on the one lot in the thirty seconds the other lot was still owned creating a wash sale. Then that lot was sold and the disallowed loss was allowed. Fidelity shows all transactions and continues to show disallowed losses in the totals. The net amount is correct. That’s been my experience anyway.
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Re: Fractional Share Wash Sale at Fidelity

Post by livesoft »

At my brokers, a fractional share is sold after the market close at a different price than the other shares. Thus, it can play out like an irrelevant wash sale. That's why I think a screen capture of what the brokerage is doing would be worthwhile for everyone to see.
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WingsFan4Life
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Re: Fractional Share Wash Sale at Fidelity

Post by WingsFan4Life »

The same thing happens to me with the fractional shares, however, it doesn't matter in the end when the lots that are assigned the wash sale value are also sold. Just another form to fill out at tax time, but the net effect is the same.
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Re: Fractional Share Wash Sale at Fidelity

Post by anon_investor »

livesoft wrote: Sun May 22, 2022 3:08 pm At my brokers, a fractional share is sold after the market close at a different price than the other shares. Thus, it can play out like an irrelevant wash sale. That's why I think a screen capture of what the brokerage is doing would be worthwhile for everyone to see.
At Fido they sell the fractional shares a few seconds after the whole shares. When you buy they buy the fractional shares a few seconds after the while shares. So for any fractional shares sold within 30 days of purchase at Fido there will always be an irrelevant wash sale.
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Re: Fractional Share Wash Sale at Fidelity

Post by livesoft »

WingsFan4Life wrote: Sun May 22, 2022 3:09 pm The same thing happens to me with the fractional shares, however, it doesn't matter in the end when the lots that are assigned the wash sale value are also sold. Just another form to fill out at tax time, but the net effect is the same.
Is it really another form? Or just the same form that one already fills out? And doesn't tax-prep software deal with it appropriately, so that in reality no extra work at all?
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livesoft
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Re: Fractional Share Wash Sale at Fidelity

Post by livesoft »

anon_investor wrote: Sun May 22, 2022 3:13 pm
livesoft wrote: Sun May 22, 2022 3:08 pm At my brokers, a fractional share is sold after the market close at a different price than the other shares. Thus, it can play out like an irrelevant wash sale. That's why I think a screen capture of what the brokerage is doing would be worthwhile for everyone to see.
At Fido they sell the fractional shares a few seconds after the whole shares. When you buy they buy the fractional shares a few seconds after the while shares. So for any fractional shares sold within 30 days of purchase at Fido there will always be an irrelevant wash sale.
Thanks. Obviously, Fidelity is not one of my brokers that I have traded fractional shares at. :)
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Re: Fractional Share Wash Sale at Fidelity

Post by Drew31 »

So as others have stated and as I thought about this more last night I think we are dealing with an irrelevant wash sale. All lots were sold of ITOT, including the May 3 purchase. Reviewing further, the May 3 purchase was for 22 shares. On my cost basis, that was reduced by .343 shares which then appears as the 3/15/21 as the wash sale. On 3/15/21 I bought 85 shares. So I think that is what is happening here but it's not entirely clear following the numbers.

Again - This was more a curiousity thing for me and in no way was concerned about the wash sale.

Image
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Re: Fractional Share Wash Sale at Fidelity

Post by Global100 »

livesoft wrote: Sun May 22, 2022 3:13 pm
WingsFan4Life wrote: Sun May 22, 2022 3:09 pm The same thing happens to me with the fractional shares, however, it doesn't matter in the end when the lots that are assigned the wash sale value are also sold. Just another form to fill out at tax time, but the net effect is the same.
Is it really another form? Or just the same form that one already fills out? And doesn't tax-prep software deal with it appropriately, so that in reality no extra work at all?
If an investor had much TLH activity and files his/her Federal tax return with FFFF or a paper return and has no adjustments/washes in IRA (all covered shares, all sales reported to IRS by brokerage, all on 1099-B etc), then s/he may need just Schedule D not Form 8949. One wash sale could then require a manual detailing of all sales on Form 8949. Question: if the one sole lot that was washed adjusted by the brokerage is then sold seconds later and accounted on 1099-B, does that mean the filer may no longer need to file Form 8949?
Last edited by Global100 on Sun May 22, 2022 10:35 pm, edited 4 times in total.
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Re: Fractional Share Wash Sale at Fidelity

Post by Global100 »

Drew31 wrote: Sun May 22, 2022 3:36 pm So as others have stated and as I thought about this more last night I think we are dealing with an irrelevant wash sale. All lots were sold of ITOT, including the May 3 purchase. Reviewing further, the May 3 purchase was for 22 shares. On my cost basis, that was reduced by .343 shares which then appears as the 3/15/21 as the wash sale. On 3/15/21 I bought 85 shares. So I think that is what is happening here but it's not entirely clear following the numbers.

Again - This was more a curiousity thing for me and in no way was concerned about the wash sale.

Image
Here's some of what may be happening with the numbers.

The (adjusted) cost basis of the 0.343 share lot on the image is $32.91.
The prior cost basis must've been approximately $32.91- $1.20 = $31.71 for the 0.343 shares acquired on 03/15/2021.
Verification: $31.71/0.343 = approx $92.45, which is between ITOT's opening price ($92.08) and ITOT's high price ($92.60) on 03/15/2021.

The proceeds from the 0.343 share lot is $30.36 on the image.
If Fidelity hadn't added the $1.20 disallowed loss to the prior cost basis of the 0.343 share lot, then the loss for that lot would've been
$30.36-31.71=-$1.35, but now it's -$2.55 so it's fine.
AnEngineer
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Re: Fractional Share Wash Sale at Fidelity

Post by AnEngineer »

Global100 wrote: Sun May 22, 2022 10:08 pm
livesoft wrote: Sun May 22, 2022 3:13 pm
WingsFan4Life wrote: Sun May 22, 2022 3:09 pm The same thing happens to me with the fractional shares, however, it doesn't matter in the end when the lots that are assigned the wash sale value are also sold. Just another form to fill out at tax time, but the net effect is the same.
Is it really another form? Or just the same form that one already fills out? And doesn't tax-prep software deal with it appropriately, so that in reality no extra work at all?
If an investor had much TLH activity and files his/her Federal tax return with FFFF or a paper return and has no adjustments/washes in IRA (all covered shares, all sales reported to IRS by brokerage, all on 1099-B etc), then s/he may need just Schedule D not Form 8949. One wash sale could then require a manual detailing of all sales on Form 8949. Question: if the one sole lot that was washed adjusted by the brokerage is then sold seconds later and accounted on 1099-B, does that mean the filer may no longer need to file Form 8949?
You don't have to put all sales on 8949, only those that need adjustment.
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Re: Fractional Share Wash Sale at Fidelity

Post by firebirdparts »

Yeah, I turned off dividend reinvestment pretty fast after the first one of those,
This time is the same
FactualFran
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Re: Fractional Share Wash Sale at Fidelity

Post by FactualFran »

Drew31 wrote: Sun May 22, 2022 3:36 pm So as others have stated and as I thought about this more last night I think we are dealing with an irrelevant wash sale. All lots were sold of ITOT, including the May 3 purchase. Reviewing further, the May 3 purchase was for 22 shares. On my cost basis, that was reduced by .343 shares which then appears as the 3/15/21 as the wash sale. On 3/15/21 I bought 85 shares. So I think that is what is happening here but it's not entirely clear following the numbers.

Again - This was more a curiousity thing for me and in no way was concerned about the wash sale.

Image
Thanks for posting the image. However, some wash sale related details are not evident, such as why the sale of at least 137 shares at a loss on 05/16/2022 was a wash sale with only 0.3430 of the 22 shares acquired on 05/03/2022.
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Re: Fractional Share Wash Sale at Fidelity

Post by Drew31 »

Global100 wrote: Sun May 22, 2022 10:10 pm
Drew31 wrote: Sun May 22, 2022 3:36 pm So as others have stated and as I thought about this more last night I think we are dealing with an irrelevant wash sale. All lots were sold of ITOT, including the May 3 purchase. Reviewing further, the May 3 purchase was for 22 shares. On my cost basis, that was reduced by .343 shares which then appears as the 3/15/21 as the wash sale. On 3/15/21 I bought 85 shares. So I think that is what is happening here but it's not entirely clear following the numbers.

Again - This was more a curiousity thing for me and in no way was concerned about the wash sale.

Image
Here's some of what may be happening with the numbers.

The (adjusted) cost basis of the 0.343 share lot on the image is $32.91.
The prior cost basis must've been approximately $32.91- $1.20 = $31.71 for the 0.343 shares acquired on 03/15/2021.
Verification: $31.71/0.343 = approx $92.45, which is between ITOT's opening price ($92.08) and ITOT's high price ($92.60) on 03/15/2021.

The proceeds from the 0.343 share lot is $30.36 on the image.
If Fidelity hadn't added the $1.20 disallowed loss to the prior cost basis of the 0.343 share lot, then the loss for that lot would've been
$30.36-31.71=-$1.35, but now it's -$2.55 so it's fine.
Thanks. One clarifying part is on 3/15/21, I purchased 85 shares only. So the .343 share lot shown on 3/15/21 was not a purchase I made on that date but must be something related to the wash sale accounting. Your sell and and purchase prices are pretty accurate off memory (haven't gone to look to verify exact prices)
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Re: Fractional Share Wash Sale at Fidelity

Post by Drew31 »

FactualFran wrote: Mon May 23, 2022 1:02 pm
Drew31 wrote: Sun May 22, 2022 3:36 pm So as others have stated and as I thought about this more last night I think we are dealing with an irrelevant wash sale. All lots were sold of ITOT, including the May 3 purchase. Reviewing further, the May 3 purchase was for 22 shares. On my cost basis, that was reduced by .343 shares which then appears as the 3/15/21 as the wash sale. On 3/15/21 I bought 85 shares. So I think that is what is happening here but it's not entirely clear following the numbers.

Again - This was more a curiousity thing for me and in no way was concerned about the wash sale.

Image
Thanks for posting the image. However, some wash sale related details are not evident, such as why the sale of at least 137 shares at a loss on 05/16/2022 was a wash sale with only 0.3430 of the 22 shares acquired on 05/03/2022.

I think the .343 is coming from the second sell order Fidelity placed. I can't remember exact amount but when I clicked sell I had XXX.343 shares. Fidelity sold the XXX first. Then a second sell order was placed for the .343 shares. So that is what triggered the wash sale since I had purchased 22 shares on 5/3/22. Maybe it's just me, but I'm not finding it intuitive to follow the way Fidelity is showing it.
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Re: Fractional Share Wash Sale at Fidelity

Post by lstone19 »

Drew31 wrote: Mon May 23, 2022 1:31 pm
Global100 wrote: Sun May 22, 2022 10:10 pm
Drew31 wrote: Sun May 22, 2022 3:36 pm So as others have stated and as I thought about this more last night I think we are dealing with an irrelevant wash sale. All lots were sold of ITOT, including the May 3 purchase. Reviewing further, the May 3 purchase was for 22 shares. On my cost basis, that was reduced by .343 shares which then appears as the 3/15/21 as the wash sale. On 3/15/21 I bought 85 shares. So I think that is what is happening here but it's not entirely clear following the numbers.

Again - This was more a curiousity thing for me and in no way was concerned about the wash sale.

Image
Here's some of what may be happening with the numbers.

The (adjusted) cost basis of the 0.343 share lot on the image is $32.91.
The prior cost basis must've been approximately $32.91- $1.20 = $31.71 for the 0.343 shares acquired on 03/15/2021.
Verification: $31.71/0.343 = approx $92.45, which is between ITOT's opening price ($92.08) and ITOT's high price ($92.60) on 03/15/2021.

The proceeds from the 0.343 share lot is $30.36 on the image.
If Fidelity hadn't added the $1.20 disallowed loss to the prior cost basis of the 0.343 share lot, then the loss for that lot would've been
$30.36-31.71=-$1.35, but now it's -$2.55 so it's fine.
Thanks. One clarifying part is on 3/15/21, I purchased 85 shares only. So the .343 share lot shown on 3/15/21 was not a purchase I made on that date but must be something related to the wash sale accounting. Your sell and and purchase prices are pretty accurate off memory (haven't gone to look to verify exact prices)
When a wash sale occurs, the unsold shares that have basis transferred to them also pick up the acquisition date of the washed shares. I believe the w under "date acquired" is telling you the acquisition date was adjusted due to the wash sale. Also, I think the transaction history needs to be read from bottom to top in the long-term section.

So what I think happened is all but the 0.343 fractional share was sold in one transaction. At the end of that transaction, you still owned 0.343 shares. So 0.343 shares of the 85 shares purchased 3/15/21 was considered a wash sale with a $1.20 adjustment as shown on the line above the 85 shares. That 0.343 was split off the 22 shares purchased on 5/3/22 leaving the 21.657 sold as short-term. Some time later (milliseconds?), the 0.343 shares were sold with an adjusted basis and an adjusted acquisition date of 3/15/21. What did you pay for the 22 shares acquired on 5/3/22. $2,034.12? I get that from adding the $2,002.41 basis for 21.657 shares to the $32.91 basis for 0.343 shares and then subtracting $1.20 which appears to be the wash sale adjustment.
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Re: Fractional Share Wash Sale at Fidelity

Post by Drew31 »

lstone19 wrote: Mon May 23, 2022 6:38 pm
Drew31 wrote: Mon May 23, 2022 1:31 pm
Global100 wrote: Sun May 22, 2022 10:10 pm
Drew31 wrote: Sun May 22, 2022 3:36 pm So as others have stated and as I thought about this more last night I think we are dealing with an irrelevant wash sale. All lots were sold of ITOT, including the May 3 purchase. Reviewing further, the May 3 purchase was for 22 shares. On my cost basis, that was reduced by .343 shares which then appears as the 3/15/21 as the wash sale. On 3/15/21 I bought 85 shares. So I think that is what is happening here but it's not entirely clear following the numbers.

Again - This was more a curiousity thing for me and in no way was concerned about the wash sale.

Image
Here's some of what may be happening with the numbers.

The (adjusted) cost basis of the 0.343 share lot on the image is $32.91.
The prior cost basis must've been approximately $32.91- $1.20 = $31.71 for the 0.343 shares acquired on 03/15/2021.
Verification: $31.71/0.343 = approx $92.45, which is between ITOT's opening price ($92.08) and ITOT's high price ($92.60) on 03/15/2021.

The proceeds from the 0.343 share lot is $30.36 on the image.
If Fidelity hadn't added the $1.20 disallowed loss to the prior cost basis of the 0.343 share lot, then the loss for that lot would've been
$30.36-31.71=-$1.35, but now it's -$2.55 so it's fine.
Thanks. One clarifying part is on 3/15/21, I purchased 85 shares only. So the .343 share lot shown on 3/15/21 was not a purchase I made on that date but must be something related to the wash sale accounting. Your sell and and purchase prices are pretty accurate off memory (haven't gone to look to verify exact prices)
When a wash sale occurs, the unsold shares that have basis transferred to them also pick up the acquisition date of the washed shares. I believe the w under "date acquired" is telling you the acquisition date was adjusted due to the wash sale. Also, I think the transaction history needs to be read from bottom to top in the long-term section.

So what I think happened is all but the 0.343 fractional share was sold in one transaction. At the end of that transaction, you still owned 0.343 shares. So 0.343 shares of the 85 shares purchased 3/15/21 was considered a wash sale with a $1.20 adjustment as shown on the line above the 85 shares. That 0.343 was split off the 22 shares purchased on 5/3/22 leaving the 21.657 sold as short-term. Some time later (milliseconds?), the 0.343 shares were sold with an adjusted basis and an adjusted acquisition date of 3/15/21. What did you pay for the 22 shares acquired on 5/3/22. $2,034.12? I get that from adding the $2,002.41 basis for 21.657 shares to the $32.91 basis for 0.343 shares and then subtracting $1.20 which appears to be the wash sale adjustment.
Thanks. I’m following what you wrote and would agree. I’d have to look up what I paid for the 5/3/21 lot but your est sounds about right.

I hope somewhere on the Internet someone learned something from this thread because I feel I wasted a bunch of effort following g the trail of $1.20
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Re: Fractional Share Wash Sale at Fidelity

Post by AnEngineer »

lstone19 wrote: Mon May 23, 2022 6:38 pml
When a wash sale occurs, the unsold shares that have basis transferred to them also pick up the acquisition date of the washed shares.
Not quite: the holding period is adjusted by the holding period of the washed shares.
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Re: Fractional Share Wash Sale at Fidelity

Post by lazynovice »

Drew31 wrote: Mon May 23, 2022 7:42 pm I hope somewhere on the Internet someone learned something from this thread because I feel I wasted a bunch of effort following g the trail of $1.20
Even though I knew it was an irrelevant wash sale, I learned that I am supposed to read the Fidelity activity screen from bottom to top and I learned that Fidelity assigns the purchase date of the wash sale shares to the “replacement” lot. I have always confirmed my net loss (allowed less disallowed) was correct and moved on.

So, thanks! And thanks to @lstone19 for explaining it to us.
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Re: Fractional Share Wash Sale at Fidelity

Post by rkhusky »

AnEngineer wrote: Mon May 23, 2022 8:14 pm
lstone19 wrote: Mon May 23, 2022 6:38 pml
When a wash sale occurs, the unsold shares that have basis transferred to them also pick up the acquisition date of the washed shares.
Not quite: the holding period is adjusted by the holding period of the washed shares.
And the holding period = selling date - acquisition date.
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Re: Fractional Share Wash Sale at Fidelity

Post by AnEngineer »

rkhusky wrote: Tue May 24, 2022 7:17 am
AnEngineer wrote: Mon May 23, 2022 8:14 pm
lstone19 wrote: Mon May 23, 2022 6:38 pml
When a wash sale occurs, the unsold shares that have basis transferred to them also pick up the acquisition date of the washed shares.
Not quite: the holding period is adjusted by the holding period of the washed shares.
And the holding period = selling date - acquisition date.
Right. I'm pointing this out for the scenarios where transactions in the sale sale (the sale of the washed shares and the purchase of other shares) don't occur in the same day. The adjusted holding period of the new shares could be longer or shorter (up to 30 days) than the period from the original acquisition of the washed shares to the eventual sale of the new shares.
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Re: Fractional Share Wash Sale at Fidelity

Post by rkhusky »

AnEngineer wrote: Tue May 24, 2022 7:23 am
rkhusky wrote: Tue May 24, 2022 7:17 am
AnEngineer wrote: Mon May 23, 2022 8:14 pm
lstone19 wrote: Mon May 23, 2022 6:38 pml
When a wash sale occurs, the unsold shares that have basis transferred to them also pick up the acquisition date of the washed shares.
Not quite: the holding period is adjusted by the holding period of the washed shares.
And the holding period = selling date - acquisition date.
Right. I'm pointing this out for the scenarios where transactions in the sale sale (the sale of the washed shares and the purchase of other shares) don't occur in the same day. The adjusted holding period of the new shares could be longer or shorter (up to 30 days) than the period from the original acquisition of the washed shares to the eventual sale of the new shares.
In the OP's case it appears that the acquisition date for the 0.353 shares changed from 5/3 to 3/15 due to the wash sale, and correspondingly, the holding period changed from 13 days to 62 days. The original acquisition date is immaterial at that point.
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Re: Fractional Share Wash Sale at Fidelity

Post by WingsFan4Life »

livesoft wrote: Sun May 22, 2022 3:13 pm
WingsFan4Life wrote: Sun May 22, 2022 3:09 pm The same thing happens to me with the fractional shares, however, it doesn't matter in the end when the lots that are assigned the wash sale value are also sold. Just another form to fill out at tax time, but the net effect is the same.
Is it really another form? Or just the same form that one already fills out? And doesn't tax-prep software deal with it appropriately, so that in reality no extra work at all?
Yes the tax prep software filled out form 8949 for me when I filled in the wash sale adjustment. Even if you did taxes on paper, it doesn't seem too complicated... Just another form.
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Re: Fractional Share Wash Sale at Fidelity

Post by Global100 »

WingsFan4Life wrote: Thu May 26, 2022 5:45 pm
livesoft wrote: Sun May 22, 2022 3:13 pm
WingsFan4Life wrote: Sun May 22, 2022 3:09 pm The same thing happens to me with the fractional shares, however, it doesn't matter in the end when the lots that are assigned the wash sale value are also sold. Just another form to fill out at tax time, but the net effect is the same.
Is it really another form? Or just the same form that one already fills out? And doesn't tax-prep software deal with it appropriately, so that in reality no extra work at all?
Yes the tax prep software filled out form 8949 for me when I filled in the wash sale adjustment. Even if you did taxes on paper, it doesn't seem too complicated... Just another form.
I thought that Form 8949 isn't needed when the taxfiler agrees with the wash adjustments made by the brokerage on 1099-B and has no other adjustments to make? i.e. Just put the aggregate numbers from 1099-B onto Schedule D line 1a and/or 8a? Would someone please clarify. Thank you.
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Re: Fractional Share Wash Sale at Fidelity

Post by rkhusky »

Global100 wrote: Thu May 26, 2022 6:19 pm I thought that Form 8949 isn't needed when the taxfiler agrees with the wash adjustments made by the brokerage on 1099-B and has no other adjustments to make? i.e. Just put the aggregate numbers from 1099-B onto Schedule D line 1a and/or 8a? Would someone please clarify. Thank you.
Here is an exception to 8949:
You received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and doesn't show any adjustments in box 1f or 1g;
8949 (f) and (g) are for adjustments. 1099B 1g is for wash sales.
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WingsFan4Life
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Re: Fractional Share Wash Sale at Fidelity

Post by WingsFan4Life »

rkhusky wrote: Thu May 26, 2022 9:00 pm
Global100 wrote: Thu May 26, 2022 6:19 pm I thought that Form 8949 isn't needed when the taxfiler agrees with the wash adjustments made by the brokerage on 1099-B and has no other adjustments to make? i.e. Just put the aggregate numbers from 1099-B onto Schedule D line 1a and/or 8a? Would someone please clarify. Thank you.
Here is an exception to 8949:
You received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and doesn't show any adjustments in box 1f or 1g;
8949 (f) and (g) are for adjustments. 1099B 1g is for wash sales.
For some reason they used 8949 with box A checked and used 1099 1b g. I'm confident it's correct, just unnecessary I guess. Like livesoft said, not any extra effort on my part (besides reviewing now).
rkhusky
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Re: Fractional Share Wash Sale at Fidelity

Post by rkhusky »

WingsFan4Life wrote: Thu May 26, 2022 9:23 pm For some reason they used 8949 with box A checked and used 1099 1b g. I'm confident it's correct, just unnecessary I guess. Like livesoft said, not any extra effort on my part (besides reviewing now).
If you have a wash sale listed in 1099B 1g, then filing form 8949 is correct. Box A is for short term transactions reported to you, via the 1099B, and to the IRS.
Ninjadoc
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Re: Fractional Share Wash Sale at Fidelity

Post by Ninjadoc »

Did the same thing happen to me? For example ITOT below, but others similar. Usually said the fractional shares transaction was the wash sale offender! In my summary row, it shows I have "allowed losses" (the large majority) but also some "disallowed losses," from the reported wash sales. Is this just some funky math and it's all evening out in the end, or am I actually missing out on harvesting those losses?

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toddthebod
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Re: Fractional Share Wash Sale at Fidelity

Post by toddthebod »

Ninjadoc wrote: Tue Jan 03, 2023 8:16 pm Did the same thing happen to me? For example ITOT below, but others similar. Usually said the fractional shares transaction was the wash sale offender! In my summary row, it shows I have "allowed losses" (the large majority) but also some "disallowed losses," from the reported wash sales. Is this just some funky math and it's all evening out in the end, or am I actually missing out on harvesting those losses?

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You're fine. Look at the block of 858 shares with a cost basis of 78,185.25. That works out to 92.125/share. However, 28,665.59/300 is over 95/share. They increased the cost basis by the wash sale amount. If you calculate (28,665.59 - 1,329.29)/300, you get 92.121/share, which more-or-less matches the other block of shares bought at the same time.
Ninjadoc
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Re: Fractional Share Wash Sale at Fidelity

Post by Ninjadoc »

toddthebod wrote: Tue Jan 03, 2023 8:41 pm
Ninjadoc wrote: Tue Jan 03, 2023 8:16 pm Did the same thing happen to me? For example ITOT below, but others similar. Usually said the fractional shares transaction was the wash sale offender! In my summary row, it shows I have "allowed losses" (the large majority) but also some "disallowed losses," from the reported wash sales. Is this just some funky math and it's all evening out in the end, or am I actually missing out on harvesting those losses?

Image
You're fine. Look at the block of 858 shares with a cost basis of 78,185.25. That works out to 92.125/share. However, 28,665.59/300 is over 95/share. They increased the cost basis by the wash sale amount. If you calculate (28,665.59 - 1,329.29)/300, you get 92.121/share, which more-or-less matches the other block of shares bought at the same time.
awesome, thanks so much
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