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A negative amount on my closed out short sales of options contracts in the sales proceeds field is causing a review. Can I still submit since it is correct?
In the review I get a message stating that "Sales price is not between the prescribed upper and lower limits." However, this is the way in which the IRS requires reporting to be done. Only net amounts are reported. If the short option was covered for a profit, then the profit is reported as the sales proceeds and gain. If there is a loss, then a loss is reported as the sales proceeds and loss with a negative sign. A negative sign is allowed in the loss column, but causes the review in the Sales Proceeds column.
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‎February 5, 2021
3:02 PM