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How do I fix flags during federal review of my short put options which lost money?

So whenever I sold short a put option, Etrade entered zero under Box 1e (Cost Basis) and put the total net gain or loss in Box 1d (Proceeds).  The same number is then reflected under Gain/Loss amount.  I doubled checked that the numbers entered into turbotax are exactly how Etrade entered it on my 1099-B.  On all short puts that were a loss, Etrade is flagging them.  The total numbers add up as well.  Do I just ignore the flags and click through them in turbotax?  How should I handle this?
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Accepted Solutions

How do I fix flags during federal review of my short put options which lost money?

This was a bug in TurboTax that has been fixed.  If others were having the same problem then they should be able to submit now without issue.  The problem was that TurboTax would not allow a negative entry when that was how it was supposed to be entered.  No issues anymore.  TT fixed it!

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4 Replies

How do I fix flags during federal review of my short put options which lost money?

So I have completely finished my taxes, but Turbotax will not allow me to efile until I have fix the problems in review.  Very annoying as I have entered it exactly how Etrade reported my short puts for a loss.  A negative cost basis and $0 in proceeds.  Do I need to go through my records and figure out the actual numbers for these trades?  I would assume my proceeds would be the original amount I received and cost basis the amount I bought to close?

 

This was also done on the short puts in which I made money on.  Even though these aren't flagged should I do this here as well?

How do I fix flags during federal review of my short put options which lost money?

This was a bug in TurboTax that has been fixed.  If others were having the same problem then they should be able to submit now without issue.  The problem was that TurboTax would not allow a negative entry when that was how it was supposed to be entered.  No issues anymore.  TT fixed it!

rajreddym
New Member

How do I fix flags during federal review of my short put options which lost money?

I still have this issue and how do i fix it..?

JohnB5677
Expert Alumni

How do I fix flags during federal review of my short put options which lost money?

If you sold a put short, you received a premium up front.  This is your proceeds, (not a negative cost basis).  If the option expires, the cost basis is zero.  If you bought the option back.  The purchase price of the option at the time would be the Cost Basis. 

 

TurboTax uses the logic of money received is income, money for purchases is cost basis.

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