turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

How do I record an expired "short" option which earned 100% profit?

TT software "automatically" deletes "Box 1d - Proceeds" when you select "Expired" thereby recording the expired "short" option as having $0.00 proceeds and $0.00 cost. In other words, the option shows Proceeds of $0.00 and cost of $0.00 on Form 8949, column (d) and (e) respectively.   
1 Best answer

Accepted Solutions

How do I record an expired "short" option which earned 100% profit?

@moonsimm 

 

In order to close a short you must go to the market and acquire some securities.

The acquired date is the date you closed the short sale.
For Stocks, the disposed date is two business days later (settlement).
Options settle in one day.

If you did not have a loss, the disposed date is the same as the acquired date.

 

If an option that was granted (written) expired, enter the expiration date in column (b) and enter zero in column (e). The TurboTax "Expired" setting does not work correctly.

 

View solution in original post

5 Replies

How do I record an expired "short" option which earned 100% profit?

@moonsimm 

 

In order to close a short you must go to the market and acquire some securities.

The acquired date is the date you closed the short sale.
For Stocks, the disposed date is two business days later (settlement).
Options settle in one day.

If you did not have a loss, the disposed date is the same as the acquired date.

 

If an option that was granted (written) expired, enter the expiration date in column (b) and enter zero in column (e). The TurboTax "Expired" setting does not work correctly.

 

How do I record an expired "short" option which earned 100% profit?

then try using the actual date they expired

 

How do I record an expired "short" option which earned 100% profit?

Thanks for the reply.  Selling "short" options is a fairly common investment strategy and one would expect TT software would handle the matter in a more straight forward manner. Your methodology worked; however, I very much dislike having to "trick" the software to arrive at the correct entry.  TT can and should do better!!!

How do I record an expired "short" option which earned 100% profit?

i have desktop deluxe and even it does not offer the expired option.  my 1099-B and even importing from my broker both use the actual date and not "expired".  not surprising because the import is supposed to show what the 1099-B shows.

 

 

not that Turbotax is great on short option imports that expired.  no cost comes in and the app doesn't like that.  programmers, are you reading this?

 

 

How do I record an expired "short" option which earned 100% profit?

@moonsimm 

Some brokerages supply a consolidated 1099-B that reports the Short Sale in the correct manner i.e. as specified in the IRS Instructions.

Some brokerages do not.

After that TurboTax adds its own checks.

 

The best approach is to use aggregation.

Option trades are covered transactions.

Covered transactions without adjustments do not require Form 8949. No mailing is necessary.

Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing

Related Content

Manage cookies