r/tax•
Icy-Singer308

Robinhood didn't release wash sale losses on final AMZN disposition. Am I right that this is wrong?

I traded AMZN multiple times in April 2025, selling at losses and repurchasing within 30 days each time. Robinhood correctly flagged these as wash sales on my 1099-B and disallowed about $34K in losses.

Here's the thing. I sold ALL remaining AMZN shares in November 2025 and have NOT repurchased since. My last buy was in May 2025, over 190 days before the final sale.

My understanding is that since I fully disposed of the position with no repurchase within 30 days, the disallowed losses should be released by rolling them into the cost basis of the final sale. But my 1099-B shows a $29K gain across all transactions, when my actual economic result (total proceeds minus total cost) is roughly a $5K loss.

It looks like Robinhood didn't adjust the cost basis on the final sale to absorb the previously disallowed losses.

Questions:

  1. Am I correct that all wash sale losses should be released on final disposition with no repurchase?

  2. Is the right fix to override on Form 8949 with code W and adjust the cost basis on the final sale line?

  3. Has anyone dealt with Robinhood failing to track this properly? Did you run into any issues with the IRS when your 8949 didn't match the 1099-B?

Planning to take this to a CPA but wanted to gut check my understanding first.

Posted Apr 8, 2026, 2:55 AM UTC

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