Wash Sale Across Household Accounts | TSLA Across 3 Brokers
PROOF LOG #012
Wash Sale Across Household Accounts | TSLA Across 3 Brokers
When one household trades through three brokers, no single broker sees the full wash sale path.
A single broker view can miss the denied-loss path once the replacement lots land elsewhere.
FDL surfaces the same $60,000 denied-loss chain across Fidelity, Schwab, and Robinhood.
Same household. Three brokers. One TSLA wash sale chain.
Fidelity created the denied loss. Schwab and Robinhood carried the replacement lots.
Tax Alpha Dashboard makes the household state visible. Tax Report shows the filing result. Audit Trail preserves where the loss moved, what was later recognized when the replacement lot was sold, and what still remains embedded.
Proof Summary
Problem: A household wash sale can stay invisible when the loss sale and replacement lots sit across different brokers.
Prepared input: FDL reviews the household TSLA path across Fidelity, Schwab, and Robinhood as one prepared wash-sale chain.
Board result: Tax Alpha Dashboard shows $60,000 denied, $36,000 later recognized on the Schwab replacement-lot sale, and $24,000 still embedded, while Tax Report and Audit Trail preserve the full loss lifecycle.
Boundary: FDL does not make an automatic legal conclusion about every household trade. It supports CPA-prepared, in-scope household wash-sale records through deterministic outputs.
WATCH THE RECONSTRUCTION
Watch the household-level wash sale state become visible — and see one preserved portion later be recognized as a loss when the replacement lot is sold.
- Fidelity created a $60,000 denied loss on the TSLA sale
- Schwab carried $36,000 of preserved loss and Robinhood carried $24,000
- Tax Alpha Dashboard separated denied, later-recognized, and still-embedded states
- a later Schwab sale made $36,000 of preserved loss visible as a recognized loss on the replacement-lot sale
- Robinhood still retained $24,000 of embedded preserved basis
- Audit Trail preserved the household chain lot by lot
EXECUTIVE PROOF
Broker Blind Spot
- each broker sees only its own account
- the denied loss can look disconnected from later replacement lots
- preserved basis and later loss recognition can stay invisible at the household level
- the file can look locally correct while the household state remains incomplete
FDL Registry of Truth™
- Tax Alpha Dashboard shows denied, preserved, later-recognized, and still-embedded states separately
- Tax Report reflects the visible filing result
- Audit Trail preserves the household lineage lot by lot
- the same denied loss remains legible across Fidelity, Schwab, and Robinhood
PHASE 1 — THE HIDDEN HOUSEHOLD STATE
Fidelity sold TSLA at a loss.
Schwab and Robinhood bought replacement shares inside the wash sale window.
No single broker view could show the full household path.
What looks local at the broker layer can still be household-wide at the tax layer.
PHASE 2 — THE VISIBLE PRESERVED STATE
FDL does not guess the household state.
It shows the denied loss where it was created and the preserved loss where it moved.
Tax Alpha Dashboard surfaces $60,000 denied, with $36,000 carried in Schwab and $24,000 carried in Robinhood.
FDL does not invent loss.
It shows where the denied loss lives.
PHASE 3 — THE LATER LOSS RECOGNITION
Schwab later sold 600 shares at the same $210 price.
Broker economics looked flat, but FDL showed a $36,000 recognized loss because the preserved basis was still there.
Robinhood still retained the remaining $24,000 as embedded future value.
Visibility is not cosmetic.
It determines what can later be recognized when the replacement lot is sold.
FORENSIC EVIDENCE
What must remain intact
- Denied-loss continuityThe original denied loss must remain connected to the later replacement lots across the household.
- Cross-account replacement linkageSchwab and Robinhood must retain their separate preserved portions without breaking the chain.
- Remaining embedded valueLater loss recognition in one account must not erase the still-preserved value in another.
What FDL makes legible
- Tax Alpha DashboardShows $60,000 denied, $36,000 recognized on the replacement-lot sale, and $24,000 still embedded.
- Tax ReportShows the Fidelity Code W denial and the later Schwab $36,000 loss.
- Audit TrailRecords where the loss moved, what was later recognized, and what still remains embedded.
This is the point of the white-box architecture:
household scope, filing result, and loss lifecycle remain separate and reviewable.
WHY THIS CASE MATTERS
The problem is not just wash sale detection.
The real problem is household invisibility.
UHNW households often trade the same name across multiple custodians while no single broker sees the whole chain.
This is where reviewable household-level tax infrastructure matters.
WHAT FDL IS SHOWING HERE
FDL sees denied, preserved, later-recognized, and still-embedded states at once.
Tax Alpha Dashboard surfaces the household state. Tax Report reflects the visible filing result. Audit Trail preserves why each dollar moved where it moved.
That household visibility is what makes later loss recognition reviewable rather than accidental.
CHOOSE YOUR NEXT STEP
FDL — deterministic tax infrastructure for prepared, in-scope records.