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Level 3
posted Mar 4, 2022 9:03:44 AM

Options.I have a few 100 transactions. When fidelity forms are uploaded,TT lists as stock trade.Must I edit each one? If so, how? The form is clunky.Why doesn't TT fix?

I'd rather just leave as it is.  Even though it isn't a stock trade the accounting appears to be correct.  But will the IRS challenge my return if I don't categorize as an option?  It's not just the extra work - if I go in and change all entries, the chances of error are high.  Plus the categories are not quite right.  They list only as expired or sold.  what about a situation where you sell a call and then buy it back in a roll.  Fidelity automatically lists the trade as sum of the original proceeds minus the cost of closing the transaction.   My bottom line is this: has anyone been challenged by the IRS for leaving these as stock trades and avoiding the pain and frustration of reclassifing them as option trades?

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1 Replies
Expert Alumni
Mar 7, 2022 12:21:11 PM

No.  If the category is the only difference then leave them as is.  They are taxed identically.