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Can short sale info for stocks and options be entered correctly with sale date entered first with related info and acquired dated entered second

Turbo tax does not seem to permit entering sales dates before buy back dates
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3 Replies
DianeW777
Expert Alumni

Can short sale info for stocks and options be entered correctly with sale date entered first with related info and acquired dated entered second

The date acquired of a short sale is the date you closed the short sale. A short sale is closed when you go to the market and acquire securities to replace the borrowed ones. The date of sale/disposal is the same date if you closed at a profit.


@fanfare provides additional details below:

  • For stocks, the disposal date is two business days later (settlement) if you closed at a loss.
    • Note: Date Acquired and Date Disposed of refer to Columns (b) and (c) on Form 8949 that you will report to the IRS. 
  • Your trade date is the date you closed the trade and goes in (b).
    • Settlement date must be calculated taking into account weekends and market holidays. 
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Can short sale info for stocks and options be entered correctly with sale date entered first with related info and acquired dated entered second

I have desktop deluxe,   I have no problem entering a short sale using the date opened as the sales date and the date closed as the date acquired.  

 

that's the way my broker reports them

what's more, I import the trades and I get no red flags in Turbotax except when the cost basis is left bland (option expired) 

 

 

Can short sale info for stocks and options be entered correctly with sale date entered first with related info and acquired dated entered second

The thing is, not all brokerages supply you a 1099-B according to IRS requirements,

 

TD Ameritrade, for one, reports a short sale as described, above.

Some brokers will  make date disposed equal to date acquired.

 

If your gain/loss totals are accurate, and TurboTax passes it, I expect you can file that way.

 

References:

IRS Instructions for Form 8949,

"Column (c)—Date Sold or Disposed Of
Enter in this column the date you sold or
disposed of the property.
"For a short sale, enter the date you delivered
the property to the broker or lender to
close the short sale."

 

That would be the settlement date after acquiring the property.

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