Avoiding Potential Problems With Wash Sale Rules

If you actively trade equities and equity options in more than one account, unless you use proper software on all your individual taxable and IRA accounts, you will probably handle wash sales incorrectly and under-report or over-report your taxable income. In these cases, you can’t rely on 1099-B reporting because brokers use a different set of tax compliance rules than taxpayers in calculating and reporting wash sale losses.