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Should I enter a short stock sale which was held beyond the current tax year ? The short stock sale is reported to the IRS. if I don't report it I will get audited.

Turbotax gives me an error when I enter the short  stock sale because I can't enter the short stock buy
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2 Replies
M-MTax
Level 10

Should I enter a short stock sale which was held beyond the current tax year ? The short stock sale is reported to the IRS. if I don't report it I will get audited.

Call your broker.....you should only get a 1099B for the year the short sale closes.

Should I enter a short stock sale which was held beyond the current tax year ? The short stock sale is reported to the IRS. if I don't report it I will get audited.

the closing transaction - the buy on the short sale to close it out determines when to report it. if you closed the short sale in 2020 that's the year if in 2021 that's the year. 

 

the opening of a short sale should not be reported to the IRS but the broker can show it on their statements. 

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