Example: I sold put options and received $1,000 up front. When the options expired out of the money, I was able to keep the $1,000. In some instances, I received $1,000.00 up front, but then bought back an equivalent number of options for $200.00 and netted $800.00. My 1099 properly reflects the gain, but the cost basis shows as -$1,000 since I received the cash up front. Turbo Tax requires me to show cost basis as $0 or greater. How should I properly reflect it? In either instance, I never actually paid out any money.
