USA Effective negative capital gain but Robinhood statement says otherwise

[zaash]

Hi.

I realized negative capital gain in 2021 from investing in the stock market. This is simply because my starting balance in 2021 was higher than my ending balance. However, the statement that I got from Robinhood shows a positive gain and I guess it has something to do with the wash-sale rule.

How should I proceed and show effective negative balance?

Thanks for your help.

 

[Larry Bailey]

Did you sell your investments at a loss? The wash-sale rule only applies to actual sales of investments at a loss. If you have not sold the investments, you have not realized a loss (or gain). Also, the report from Robinhood may be comparing what you originally paid for the investment compared to its current value. The current value may be lower than it was last year but still higher than your original purchase price.