Can I enter a negative amount for proceeds (Box 1d) on my 1099-B?

Enter your proceeds exactly like they are listed on your 1099B.  You will enter proceeds, cost basis, and then it will automatically calculate the gain or loss based on those entries.

I also have negative amounts in box 1d on my 10099-b.  These are for BUY TO CLOSE transactions for Calls.  TT will not allow me to enter a negative proceeds as reported on my 1099-b.  Ho do i enter these transactions?

First, you should call the provider of this Form 1099-B, just to make sure that the amount in Box 1d is actually a negative amount.

It is possible that this could be a negative amount, since Box 1d displays cash proceeds, reduced by any commissions or transfer taxes related to sales.

That said, TurboTax online won't allow you to enter a negative amount, although TurboTax desktop appears to.  This issue is being looked into, as other TurboTax customers have related a similar experience.  

Edited 02/17/2017 11:05 a.m.

I was digging around the forums and apparently this is a bug that they fixed last year (2019 tax year). However, it looks like the issue still exists for 2020 tax year filing. (I just got tons of errors) My 1099B negative amount proceeds are correct. I write/sell options and this sometimes results in negative proceeds. Apparently, TurboTax had to hot fix this last year. I'm assuming they will do the same this year. 

This is still an ongoing issue... I can't submit my taxes because BOTH the web version and downloaded version of turbotax won't allow a negative number there. 

Please try entering negative numbers with parentheses.  For example, enter -150.00 as (150.00).  It appears that this was a known issue in Tax Year 2019 and it was fixed.  Several customers have written recently with the same question for Tax Year 2020.  Please let us know if this solution doesn't help for now.

It didn't work. TT doesn't allow you to do (150.00) in place of -150.00.

@ReneeM7122

Hi Renee, I assume you work for turbo tax? 

Can you please tell us if this has been reported to the turbo tax software group to be fixed or not?   And if so what is the anticipated fix date?

I second that! It’s extremely frustrating that TT can’t account for this without complaints. I called customer service yesterday and while the CSR was nice, she had absolutely no clue as to what the issue was nor how to fix it. I am not waiting until 4/15 to file my taxes so the sooner there’s a resolution the better. I don’t want to have to file my taxes on another platform.

The issue is not fixed and my tax filing is going to be delayed because of it. Please provide either a resolution or if I need to go file elsewhere. 

@ameunier16 

 Please contact support and report this as a problem.  The more people that report it, the better chance we get it fixed.   This infuriates me that this was fixed last year and now the problem is back.  Fill out a request at https://support.turbotax.intuit.com/contact This will eventually take you to a page with the phone number and a support ID.   And please update this thread with status on your support request.

The phone rep and "IT specialist" claimed that there would be a huge software update on 2/11 to correct this. I remain reserved about this date, but I recommend everyone files a claim to report this ASAP, so that they do have proper incentive to fix this. 

The IRS (and TurboTax) will not accept negative numbers in either the cost basis or proceeds fields. You will have to manually edit any imported negative entries in order to proceed with e return and e-file.

Starting with the 2020 tax returns, the IRS will reject any return filed with a negative number reported in the proceeds or cost basis fields for Schedule D. TurboTax is flagging these situations ahead of time before the return is filed in order to prevent the IRS rejection. Some brokers are still using the old convention for reporting negative values and have not updated their reports to match the IRS.   
  
The error message reported by TurboTax is telling you that the number entered cannot be negative. 
  
Gains from expired options are reported by entering the gain amount in the proceeds column and no amount in the cost basis column. This will result in a gain.
  
Losses from expired options are reported by entering the loss amount as a positive number in the cost basis column and no amount in the proceeds column. The end result here would be a loss.
  
 No negative numbers should be entered in either the cost basis or proceeds fields.   
  
If negative numbers have been imported through your brokerage statement, you will need to edit the entries to make the correction. 

@ameunier16

Thanks Todd for your replies, really appreciated it.

I just called TD Ameritrade and their TAX team says the negative value is being reported just as last year when appropriate. They also provided me with the 2021 1099B instruction that says how to represent an negative proceed (form 1099B instruction):

“Box 1d. Proceeds Enter the gross cash proceeds from all dispositions (including short sales) of securities, commodities, options, securities futures contracts, or forward contracts. Show a loss, such as one from a closing transaction on a written option or forward contract, as a negative amount by enclosing it in parentheses”

According to TD Ameritrade, they have not been advised by IRS to not report negative proceed values on 1099B for 2020.

Also, searching around this forum, it looks like last year TTX had the same issue with the negative proceed  but eventually got fixed:

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/my-1099b-has-a-negative-cost-basis/00/598390

It would be great if you have specific docs from IRS regarding “negative proceeds are not accepted and will be rejected” so that I can forward to TD Ameritrade.

Thanks a million, we’re just caught in the middle of this.

Appreciate this !

Kim

No, you do not record any negative numbers in your return.   The proceeds are not allowed to be negative, per the IRS.   "The IRS no longer allows for the reporting of proceeds on a 1099-B to be negative. If your broker has reported your proceeds as a negative, then you will need to contact them to issue you a corrected 1099-B or file by mail. "  Please review this IRS link for further details. 

[Edited 02-08-2021|11:34 PST]

@kimchu 

I saw the 2021 instructions for 1099B as you described.   My question is shouldn't we be looking at 2020 instructions for 2020 tax year?  I don't see 2020 instructions for 1099B though

Thanks Dave,

The Link you provided to IRS is not valid "page not found". Can you please resend ?

Any documentation would be greatly appreciate to forward to my broker. 

Thanks again.

Kim

Yes indeed. Please select this  link .

Thanks Dave,

I downloaded the Sch D Instruction and scanned the entire document but could not find where it references you can not have negative number for proceeds (line 1d).  

If you can kindly point out the page and paragraph where this is referenced, that would be very helpful to take back to my broker.

Thanks again.

Kim

@kimchu 

I got the same reply from TD Ameritrade as well.

The 2020 H&R Block Premier tax preparation software accepts negative proceeds in box 1d.

Thanks for the post. I believe you may be right in that the IRS looks to make sure the total proceeds number on the return matches the issued 1099B, otherwise, this could trigger an audit.  So changing bases to negative value and the proceeds to zero is not ideal.

Thanks for the info on the H&R software. If they accepts negative value in line 1d, its may be worth switching to that software. 

Appreciate it.

I am having the same issue.  The negative proceeds are correct but I can not submit my returns.