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I sold covered calls and Turbo Tax is reversing the sale and expiration date making it look like I sold before I bought.

 
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3 Replies
DavidD66
Expert Alumni

I sold covered calls and Turbo Tax is reversing the sale and expiration date making it look like I sold before I bought.

Think in terms of acquisition and disposition dates.  With covered calls, your opening transaction is the short sale of the call option.  That is the date you opened the position, or your acquisition date.  If you closed the position by buying the call back, that is your disposition date.   With a long position of a stock, your acquisition date is the date you bought the stock, and the disposition date is the date  you sell the stock the stock.  With a short option position, your acquisition date is the date you sell, the disposition date is the date you buy back the option or when it expires. 

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I sold covered calls and Turbo Tax is reversing the sale and expiration date making it look like I sold before I bought.

Is there a not pain in the butt way to bypass this step on TurboTax? @DavidD66 

I sold covered calls and Turbo Tax is reversing the sale and expiration date making it look like I sold before I bought.

you did sell before you bought or they expired.  as such any gains or losses are short-term capital gains/loss

 

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