- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Expired short options positions (covered calls) have a profit, but if I mark the option as expired I cannot enter the gain. Should I mark them as sold instead?
When corrected the various options transactions imported from my 1099, I am uncertain as to how expired options short position should be handled. These would be covered calls, or written puts that expire. These generate a profit, but if I mark the option as expired (using TT Premier) the gain is erased. Should these be treated as Sold instead of Expired? Does TurboTax assume that all Expired options were purchased by me, and not written by me?
Topics:
posted
April 3, 2023
8:34 PM
last updated
April 03, 2023
8:34 PM
1 Reply
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Expired short options positions (covered calls) have a profit, but if I mark the option as expired I cannot enter the gain. Should I mark them as sold instead?
Perhaps. Your opening position is a sell to open because you were selling a covered call. TurboTax may be interpreting your sell to open as the closing transaction because a sell usually comes later in time than a buy. Thus, you need to make the expiration date of the option your purchase date, and your sell to open as the sell date. In this way, the proceeds you received from the sale of the covered call, will be your sale proceeds. The option expiration as the purchase date will reflect a cost basis of zero, thus the option premium you received will be your total gain.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
April 4, 2023
9:03 AM
Still have questions?
Make a post