How Do I Enter a Wash Sale?

A wash sale occurs when you sell a stock or security you've owned at a loss then re-purchase the same stock or security within a limited period of time after the initial sale. In this situation, you cannot deduct the losses from the sale of a stock because the losses are subject to IRS "wash sale" rules.

Here's how to get to the investment sale screens in TurboTax Online:

1. Select the Tools button in the upper right-hand portion of the screen.
2. Select Topic Search.
3. When the window opens, type "wash sales" into the box, select the item, and then select GO.

Here's how to get to the investment sale screens in TurboTax desktop or CD/download version:

1. Enter your cursor into the search box in the upper right-hand portion of the screen. 
2. Type "wash sales" into the box, select the item.

Enter the information about the sale of your investment assets and click continue and follow the on-screen instructions.

TurboTax will ask you questions about the purchase of your replacement shares and guide you to the calculation of your wash sale results.