Expired options needs review

[ghappy21]

I have many sold short options that expired. They come through with a zero cost and the premium as proceeds, which is all correct. TT flags them for review. I only change the category from stock to option, and click the expired box. I don't change anything else.  TT zeros out the proceeds.  That is not correct. They have zero cost but the premium is the proceeds.  Other than being classified as stock, the original import is correct.  I do not think I can use a Summary approach because I also have wash sales.  There are a lot of these expired options. It would be a ton of work to enter manually. What to do?  I am preparing in On-line but bought the Download version if that is part of a solution.

[Anonymous_]

@fanfare 

[fanfare]

Don't change the trade from stock to options. it makes no difference.

Besides, I found that setting EXPIRED in earlier version of TurboTax had no effect.

Then try to proceed, even with flagged items.

Some flags are just warnings.

You may be getting flagged for date order.

I can't give you an exact workaround since I don't have TurboTax 2021 here.

First rule, no details are required for Box A or D without adjustments.

For an active investor, all your option trades are Box A or D so look to summarize those.

( Short option  - e.g. option write that expires - is always Box A. )

You can summarize wash sales if you mail in the details to IRS.

Or you can  import or manually enter each of the wash sales to Form 8949.

IRS requires transactions with adjustments (e.g. was sales) to be itemized.

You can summarize everything that is on a 1099-B,if you are able to mail in your entire consolidated 1099-B.

You can summarize anything else (Box C or F) if you are able to supply the details on some other form (eg spreadsheet).

If you use TurboTax Online, it may ask you for a PDF copy of your details, in which case no mailing is needed.

@ghappy21 

I can tell you how IRS expects you to report short sales if you need that but you said you have too many to enter manually.