Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 28, 2022 4:02:25 PM

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

0 3 362
3 Replies
Expert Alumni
Mar 28, 2022 5:22:49 PM

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. 

New Member
Mar 28, 2022 5:25:37 PM

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

Level 15
Mar 28, 2022 11:33:38 PM

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