Question on reporting selling put and call options

[BKS1]

Will TurboTax automatically adjust basis of the stock , too, if an option is assigned?   Or would you have to go in and adjust it manually (that is, delete it from the uploaded activity and adjust the the stock basis if it was a cash secured put or sale price of  stock if it was called away from an assignment of a covered call?  Thanks

[GeorgeM777]

No, TurboTax will not automatically adjust cost basis.   Therefore, you will have to adjust cost basis.  With options that are assigned, such as a short put or a covered call, brokerage firms generally will not include deferred losses on a 1099-B until the offsetting position has been closed out.  However, there could be option transactions on your 1099-B that are straddles and in which case, need to be adjusted in some way.   Manual adjustment is the only way to make changes. 

@BKS1

[jimavera]

It is *NOT* true that expired options are imported correctly by TT from brokers.

EVERY SINGLE ONE shows a basis of zero (which is correct for sold options which expired), but Turbotax flags this as an error.   In 2024 Desktop Premier it says "We found something wrong..." and "Needs info" and the only options are to "adjust" the cost basis, which would be wrong because anything other than zero would be incorrect, or "I don't want to make changes right now" which would be wrong because I don't want to change it later.

This nonsense occurs for every single one of a huge number of imported transactions.