I sold call against X shares that I own. I got some credit then closed the call before the expiration date and had to pay premium to close it.
The premium was less than the credit I received, so I agree there are realized gains here but I don’t understand why the proceeds in 1099B are negative.
The proceeds should be either $0 or more than $0 because TurboTax counted this as LOSS instead of GAINS due to (-ve) proceeds and $0 cost basis.
Here is more details about these transactions:
1- XYZ 01/20/2023 CALL $13.00
On 09/09/22 I Sold 36 call options ->(Sell to Open) at $1.15 -> received $4,140 as credit
On 11/09/22 I bought back the 36 call options -> (Buy to Close) at $0.29 -> paid $1,044 as premium
Now the total gains are $4,140 credit - $1,044 premium = $3,096 as it shows in the 1099-B gains/loss column.
Why the proceeds here are -$5,183.82? shouldn’t be $3,095.82
what financial institution? in over 40 years I have never seen option activity reported that way. the proceeds from the short sale should be without a minus sign in the proceeds column and the cost to close should be shown in the cost basis column resulting in proper reporting and gain. if they send it this way to the IRS it could cause issues there too. it seems obvious to be the FI has a bug in its reporting program if its shows proceeds of -$5K+. call the FI