Sales Price is not within the prescribed upper or lower limits error. This continues for EVERY transaction with a negative dollar amount (whare are capital losses). If you change the value, then it effects the capital gain/loss.
Okay.
What number should be represented in that field? There is no "Sales Price" field in a 1099-B. The field (I believe) is auto-calculated based on (Proceeds..1d) - (Cost Basis...1e) on the 1099-B for each of the individualize transactions. In my case I have 74 transactions pulled in from TD Ameritrade.
If you zero out the number (make a non-negative) your total capital gains goes UP and is not represented correctly, thus effecting your total return (which then become inaccurate).
You cannot zero out the number and complete an accurate representation of your 1099-B.
I am simply informing you that the field will not accept a negative number.
You can make an adjustment in the program but a negative number in that field will throw an error.
I am having this exact same issue too. Why isn't there a simple fix for this? This seems to be a frequent problem for people with options contracts...
I'm having the exact same problem as well. It seems like an error that the box does not allow negative numbers. It's supposed to be box 1d from the 1099-B...well my 1099-B has plenty of entries with negative numbers in box 1d. What is the suggested workaround exactly?
The rep said that an "update" was coming on 2/11 to fix this issue, but I'm not sure how confident she was in this disclaimer, or if she was just repeating that particular date from previous years. I highly recommend everyone who is having this issue call in to file a report that they're having this issue, so that TurboTax's team makes it a priority to fix this common issue ASAP.
I too am having the same problem for every negative sales price . Data imported right from TD Ameritrade. Rep told me program is correct and not a bug but no help on anything to remove the errors. It looks like it will let me file but I don't like all the errors (60 for me). Anyone know if TaxAct or another program is able to handle this?
having the same problem If you put a zero in box 1 d. This will affect your net short term capital gain/loss # Any idea what the fix is?
There has been a change by the IRS starting with the 2020 tax returns that 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. The end result here would be positive.
Losses from expired options are reported by entering the loss amount in the cost basis column and no amount in the proceeds column. The end result here would be negative.
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.
I faced a similar situation during the review phase. I went into the 1099-B transaction and started fixing the CALL Options
My options were expired and I kept the premium (short term gain).
However, this looks incorrect since I did not sell the option.
Is this a bug in TurboTax? Or should I go with the second choice? At least in the second choice, the tax is computed correctly though I really did not make gain from the selling an option
I will email TD Ameritrade right now to see if they are aware of this IRS change and see if they will send out amended 1099 documents. Why would the phone rep tell me that there was going to be a new software update on 2/11? Should I be expecting one from TurboTax to correct this issue? Or, should I rush TD Ameritrade to start processing new 1099s? I prefer not waiting till the deadline to take care of these matters. Thank you for your help.
It is unclear @quantbone2020 what rep are you talking about? Turbotax or brokerage firm?
I found this information from IRS: https://www.irs.gov/pub/irs-pdf/i1099b.pdf
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
I was speaking to a phone rep with TurboTax that had assured me a "big update" was coming on 2/11 to the software, but Annette is now stating that the IRS rejects tax returns with negative numbers, and now you have provided us an IRS link that shows that they would accept negative numbers in Box 1D using parentheses. May we have some clarity on the matter?
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.
That solution works great when I change it using the Capital Gain (Loss) Worksheet but now throws twice as many errors on the review of the 1099-B Worksheet which is not changed by the first. Buggie getting to the supporting form.
Thank you very much. I manually made adjusts and fixed all the errors--removed all negative numbers in proceeds column and entered same number as positive number in "Cost" column
!!!!NOTE MUST REPLACE ANY NEGATIVE NUMBERS IN PROCEEDS COLUMN WITH A ZERO OTHERWISE WILL GENERATE MORE ERRORS
Replace negative numbers in proceeds column with a zero and enter same number as positive value in "Costs"
I have abou 530 trades, how am I supposed to go manually all of it??
@ramspeedkill1976 You can enter a Summary for individual Categories. Click this link for instructions on How to Enter a Summary in Lieu of Individual Transactions.
I'm not a tax expert, but the IRS "Instructions for Form1099-B" states on page 8:
"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."
This leads me to think if the TurboTax software would allow the use of parentheses, this would meet IRS requirements.
Turbotax does not allow non-numeric characters other than $
You are correct, the IRS does instruct the use of parenthesis instead of a minus sign for negative numbers. But for standard practice on tax returns IRS has provided clear language that instructs us to round up when the amount is 50 cents and over, and down when it's 49 cents and lower.
To get around the error for wash sales, any amount that's 49 cents and lower should be rounded down to zero. Then the error should resolve itself.
Here it is from their website (under "Computations)": https://www.irs.gov/publications/p17/ch01.html
Computations
The following information may be useful in making the return easier to complete.
Rounding off dollars.
You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.
If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.
If you are entering amounts that include cents, make sure to include the decimal point. There is no cents column on Form 1040 or 1040-SR.
Equal amounts.
If you are asked to enter the smaller or larger of two equal amounts, enter that amount.
Negative amounts.
If you file a paper return and you need to enter a negative amount, put the amount in parentheses rather than using a minus sign. To combine positive and negative amounts, add all the positive amounts together and then subtract the negative amounts.
Resolved: Since the IRS does not allow negative entries, goto form section, form 1099-B Wks, On the right ( Quick Entry Table) all negative numbers (probably options) will be highlighted yellow, Copy the Sales Price (proceeds) into the Cost or other Basis column (check for accuracy), the go back to the Sales Price and replace the original entry with a '0'. Then scroll down the quick entry and do this for all highlighted errors. THIS WILL RESOLVE THE ISSUE. The problem does not appear to be with TurboTax but your brokers import. They obviously did not read the new IRS flyer code and make the corrections.