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.
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.
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.
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!!!
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?
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.