Set Up Securities Ineligible for Wash Sale Processing

Owned by Tom Fahey (Unlicensed)
Last updated: Oct 05, 2016 by Former user (Deleted)
2 min read

You can create wash sale exclusion codes to identify security types and/or processing security types (PSTs) for securities that you want excluded from wash sale processing.

About Wash Sale Exclusion Codes

When you set up an accounting basis to track wash sales processing, the system assumes that almost all transactions in Eagle STAR are eligible for wash sales. You can create wash sale exclusion codes to identify specific security types and/or processing security types as ineligible for wash sales processing by default. When the system processes an open or close transaction for an entity eligible for wash sale processing, it checks the wash sale exclusion codes to determine whether you excluded the security type and/or processing security type associated with the transaction from wash sale processing. If so, the system sets the transaction's (hidden) Wash Sale Eligible Indicator field to a value of N and does not perform wash sale processing for that transaction.

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You can also manually adjust any transaction determined to be ineligible for wash sales processing. However, use of the security level exclusion overrides the wash sale eligibility criteria you define at the entity level and/or trade level. Turning off wash sales processing for a given transaction requires you to manipulate the transaction level tag in the panels and introduces custom logic. In addition, the trade level exclusion methodology does not allow you to cover transactions such as corporate actions generated by the STAR engine.

Add Wash Sale Exclusions

In the Add Code Value panel, you can add wash sale exclusion codes to identify security types and/or processing security types (PSTs) for securities that you want excluded from wash sale processing. 

To add a wash sales exclusion code:

  1. From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
  2. Enter Add Code Value in the Start Search text box.
  3. Click the Add Code Value link to access the panel.
    You see the Add Code Value panel.
  4. Click the Code Category Name field and select WASH_SALE_EXCL.
    When you select this value, the Code Category Description field displays a value of WASH_SALE_EXCLUSION and the Wash Sale Exclusion Type field appears.
  5. Click the Wash Sale Exclusion Type field and select a value of Security Type or Processing Security Type.
    You can exclude transactions from wash sale processing based on the security's security type or processing security type.
  6. Click the Code Value field or the Code Name field and select the code for the security type or processing security type that you want to exclude from wash sale processing.
  7. Complete the remaining options on the Add Code Value panel.
  8. Click Submit.
    Eagle Accounting excludes the selected security types and/or processing security types from wash sale processing going forward.
  9. Close the Add Code Value bottom tab.

Delete Wash Sale Exclusions

After you create wash sale exclusion codes to exclude security types and/or processing security types from wash sale processing, you can make those security types or processing security types eligible for wash sale processing once again. Use the Delete Code Value panel to select the WASH_SALE_EXCL code category and then choose the code you want to remove. You cannot use the Change Code Value panel to change or remove a wash sale exclusion.