topic possible bug - 1099B for options Sell in Investors & landlords

possible bug - 1099B for options Sell

sanash — Tue, 24 Feb 2026 07:20:35 GMT

option sell can have the negative cost acquisition. The system does not pick up while importing the 1099B and it neither allows manual correction as it expects at least 0 in that field. I think its a bug and needs to be resolved as it it very much possible to have the

Box 1e - Cost or other basis = (-100) and

Box 1d - Proceeds = 0

Gain = +100

System, after importing, asks to review these items.

Re: possible bug - 1099B for options Sell

Mike9241 — Thu, 21 Sep 2023 03:48:21 GMT

There is apparently an issue with the import file the broker provides. there can be no negative cost. what you have on a short sale is proceeds. then if it lapses it has zero cost resulting in gain. if you close out the short sale with a purchase the that should be the cost the broker is reporting. if the option is excercised the procced are supposed to be add to the proceeds from selling the stock.

Re: possible bug - 1099B for options Sell

fanfare — Sat, 23 Sep 2023 23:56:13 GMT

My broker does similarly, but puts negative amount in proceeds, and zero in cost.

My tax software accepts this, but will not allow a negative amount in cost.

BUT

e-File would not work with negative proceeds on Schedule D. This was a known problem and

IRS suggested a work around to tax software providers so the e-File could go through.

Perhaps that problem has been fixed by now.

Schedule D is supposed to allow a negative proceeds and you should be able to e-File.

@sanash

cc: @Mike9241

Re: possible bug - 1099B for options Sell

Mike9241 — Sat, 23 Sep 2023 23:50:51 GMT

@fanfare @sanash my brokers do the opposite for short sales. proceeds are positive on 1099-B as is cost if they are closed out, so I have no issue with import or e-filing. to me negative proceeds when you actually received them seems illogical. also, as you pointed out negative cost is not allowed so if i sold for 10000 and closed out for 8000 there's a problem in showing the proper 2000 gain. if I show negative proceeds, desktop version, and assuming no cost - option expired, instead of a 10000 gain I have a 10000 loss. An extremely huge problem

Re: possible bug - 1099B for options Sell

fanfare — Sun, 24 Sep 2023 00:02:09 GMT

In the example I have from my broker, the transaction did result in a loss.

Re: possible bug - 1099B for options Sell

Mike9241 — Sun, 24 Sep 2023 00:11:14 GMT

if you sold short and the proceeds from the short sale exceed the cost to close or the option lapsed, then you see the problem you have a gain not a loss. BIG BIG BUG.