Turbo tax does not allow negative numbers in 1099-B box 1d, but there is a process to properly post the number and have it match the IRS.
Some brokers now reports losses of short options on 1099B as a negative number for proceeds in box 1d and a zero value for cost basis, rather than separate values for cost basis and proceeds that show a loss.
The broker explanation is: "We are now updating our reporting of short options on the 1099-B to reflect how the IRS is now requesting that these transactions be reported. In this new format, the cost basis and proceeds for short options is consolidated into Box 1d in a net amount."
To be able to post a negative value to form 1099-B box 1d follow these steps.
- Select the option for a 1099-B
- Select to type it yourself
- Enter Bank
- I'll enter one sale at a time
- Enter the stock data and leave 10d BLANK
- When you hit Continue you will get a RED error message
- At the bottom of the screen select Allow me to continue with incomplete information. [Continue]
- Any less common items will be blank. Select Done
- No this is not employee stock
- Select the last item An adjustment is required for reasons not already covered.
- Enter the negative number that you had in Box 1d.
- This will complete the transaction.
@cparmba521
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