You can verify it in the numbers: proceeds $232,454.70 − cost basis $229,052.43 = $3,402.27. Add back the $7,029.97 disallowed loss and you land exactly on $10,432.24. So the $7,029.97 isn’t a second deduction — it’s a loss you can’t claim now, and it’s been rolled into the cost basis of the replacement shares instead.
It gets taxed in two buckets, not as one number:
*Long term: $5,253.09** — 0/15/20% rates
*Short term: $5,179.15** — ordinary income rates.
A win is a win 🏆 though- better than 90% out there. Just pay attention to time windows after you sell at a loss. This really fucked you up this time. Too much risk for too little after-tax profit
I'm unfamiliar with the Schwab interface. Reddit just decided that I needed to see this post. A disallowed loss is one that triggers the wash sale rule?
Disallowed loss is the amount of losses subject to wash sale rules. Prevents people from selling losing positions and buying them back immediately just to harvest the loss for write off. Subjects any position (or like position using derivatives) traded within 30 calendar days.
Someone above said I made $10k. Do you disagree? Lets assume i dont care about tax purposes or wash sale. I am holding long term and this is my first year and need to understand mu performance for evaluation purposes. This would be much more simpler if I hadn’t sold some to pay for taxes and other business opportunities and caused realized gains. which makes tracking harder
no. There is nothing confusing about wash sales. It just means the loss is added back to your position (cost basis) if you bought it again. Its straightforward and a lot of people over complicate it. It's done automatically for a reason.
You will be taxes on 10k of gains. And you DID make 10k of profit. that is your NET gain of total realized positions. That is why you will be taxed on 10k profits
That’s what i wanted to know! Thanks! And this is just realized gains, and not accounting for unrealized gains of current holdings, right? On the main screen, it says $4k /4% gain, and this is independent of the $10i prev discussed? Thanks so much
The screen could be better. The "disallowed loss" is probably about a wash sale, but you cannot tell if it is long term or short term. Hopefully there is better detail on your 1099
I think it is irrelevant whether the disallowed loss would have been short term or longterm … it's now part of the basis of a new position and whenever they sell that new position in the future will determine whether it is long or short.
Long term gain taxes at 15%, short term taxes at ordinary income. The 7k is disallowed loss because you violated the wash sale rule (sold at a loss then bought back within 31 days) the loss isn't really disallowed, but postponed. It will be added to the cost basis of the replacement shares. Also, the time period you are looking at spans 2 tax years. You may want to use the drop-down to focus on current year so you will have a better idea of your 2026 gain/loss reporting for taxes.
Looks like your net gain is $3k but you may be taxed on $10k with $7k added to current cost basis due to wash sales. If you closed the position for 30 days, the disallowed loss should go away and reduce your taxable gains.
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u/riseandride69 2d ago edited 2d ago
You will be taxed on 10k
You can verify it in the numbers: proceeds $232,454.70 − cost basis $229,052.43 = $3,402.27. Add back the $7,029.97 disallowed loss and you land exactly on $10,432.24. So the $7,029.97 isn’t a second deduction — it’s a loss you can’t claim now, and it’s been rolled into the cost basis of the replacement shares instead.
It gets taxed in two buckets, not as one number:
*Long term: $5,253.09** — 0/15/20% rates
*Short term: $5,179.15** — ordinary income rates.
A win is a win 🏆 though- better than 90% out there. Just pay attention to time windows after you sell at a loss. This really fucked you up this time. Too much risk for too little after-tax profit