The Wash Sale Holding option will open a new column in the main grid with the heading Holding Date. This field is only used in conjunction with wash sale deferral entries (indicated by a "W" in the O/C column).
To activate the Wash Sale Holding option, from the User menu, check the box for Wash Sale Holding. The new Holding Date column will open on the grid display.
Purpose of the Holding Date Field:
When a wash sale is deferred to the next tax year, TradeLog will create a "W" record in the next tax year data file when the End Tax Year function is completed. The Holding Date of the "W" record will account for the holding period of the original trade.
In this example the original trade was acquired on 6/12/2023 and then closed on 12/3/2023 at a loss. On 12/14/2023 more shares were acquired of the same position, which were held open at the end of the tax year (this triggers a wash sale deferral). The 2024 tax year file would have the records as shown in the image below.
Notice that the Holding Date for the "W" record accounts for the holding period of the original trade (which was 174 days). Although 100 shares were acquired on 12/14/2023, because of the wash sale rule, 50 shares are considered to have been held since 6/23/2023 (174 days prior). Once the shares are closed, TradeLog will be able to report the proper holding period based on the dates (long-term or short-term).
It is usually not necessary to make adjustments to the Holding Date for "W" records that are created automatically by TradeLog. However, when manually entering a wash sale deferral for the first tax year using TradeLog, you may enter the Holding Date for proper accounting.