from Schwab: says IRS requires brokers to only report the net proceeds of a sold put option
so why does Turbotax tell us all of our sold puts "needs review." if I manually go in and add buy, sell, and their dates, i would seem to be violating IRS rules. this is really frustrating for us put option sellers. the brokers are correctly generating the correct IRS format on their 1099b's, and Turbotax is importing them correctly as proceeds info only. here is the blurb from Schwab:
"Scenario #2: Sell to open, then buy to close
What if the trader in the above example sold the XYZ put options contract to open at $5.30, then closed it out with a $1.16 purchase?
The 1099-B will show a proceeds amount of $4.14 ($414 with the multiplier, and it will be modified by transaction costs) and a basis of $0. The IRS mandates that a trader with a cash-settled, written contract report only the gain or loss as proceeds. A tax document will not reflect the $5.30 or $1.16 amounts, just the profit of $414 minus transaction costs.
If this had been a loss, the proceeds amount would be negative."
