Really bad bugs in Options

[menchly]

Yes, Turbo Tax seems even have added more bugs than last year - and that must have required a lot of effort.   A really bad bug happens if an option was initiated in 2023 but does not expire until 2024.  Turbo Tax shows it as income in 2023.  If you don't catch this you will end up paying income tax twice on any gains.    Also, as others have noted, the Options entry process doesn't work if you use the "Expired" button.  If you use it the basis disappears and you are left with 0 and 0 for "Proceeds" and "Cost basis".  I found a work around.  Use the "Sold" button (even if the option expired) and put 0 in the cost basis (which you have to do multiple times because, the forms don't communicate with each other - also happens in many other parts of Turbo Tax).   Further, when options trades are imported they show up as Stock, not Options.  Because of these bugs you will have to examine and correct each and every option trade.  

[Mike9241]

i don't know if it's you or the broker who is creating the issue, but the broker is not supposed to report open option positions - long or short on the 1099-B. Shorts closed at a loss in 2023 don't get reported until the settlement date which could be in 2024

the exception would be for traders who make the Mark-to-Market election.  For them all positions under the M-T-M election are deemed sold on the last day of the year at the closing market price. However, with M-T-M any gains or losses are ordinary icome/loss and not capital gains