So on Dec 30, 2022 I opened and the closed on the same day a put butterfly on SPX--i.e., 2 short puts and offsetting 2 long puts, all also expiring on Dec 30, 2022. Since the options are on SPX they are treated as Section 1256 contracts.
I made a small gain on the overall trade, with a loss on the long puts offset by a slightly larger gain on the short puts.
For all 4 puts the trade date was Dec 30, 2022 but the settlement date was Jan 3, 2023.
My 1099-B from TDA only lists the long legs on which I had the loss--the 2 short legs are missing completely. I contacted them and they said broker reporting rules for closing shorts use the settlement date.
Obviously something is wrong here--it has me realizing the losses in 2022 and putting off the gains until 2023.
The best rule I can find it that shorts closed for a gain (as mine where) use the trade date rather than the settlement date, meaning Dec 30 2022, in which case everything would come out correctly--for 2022 I'd realize the slight gain that resulted over all. Or lacking that, that the short positions would have been marked to market for the tax year 2022 instead of just not existing at all.
I'm not sure how to resolve this if TDA will not change the 1099-B, I assume I have to use lines 8 through 11 under Section 1256 Contracts from the 1099-B.
