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dumrinda
Level 3

Expired stock options

I have done options trading via fidelity in the year 2020. These options were expired and I made some money. I imported 1099-B form in TurboTax.

I have following questions for expired "option" :

  • What should I answer for "What type of investment did you sell" ?
  • When I choose "options" for above question, then I had to answer that I "purchsed" it.
  • After second step, Proceed cost text box goes away. Cost basis is 0.0 
  • When continued and saved, it shows Proceed and Cost basis as 0.0. This looks wrong to me.

 

Does anyone have any suggestion?

 

Thanks

5 Replies
npierson7
Level 1

Expired stock options

If the option were expired, you didn't sell or exercise it, then you didn't make any money on the options. 1099-B probably shows your income you earned form different sells. Look carefully to the symbols in the property description on your Form 1099-B  

dumrinda
Level 3

Expired stock options

These are the values from the columns. It shows a gain of $82.62. 

 

Action: Expired

Quantity: 2.000 0

Date acquired: 8/21/20

Date sold or disposed: 08/21/20

Proceeds: 82.62

Cost or Other basis: 0.00

Gain/Loss: 82.62

 

npierson7
Level 1

Expired stock options

The best solution in that case would be to enter the $82.62 as it reported on your form 1099-B, even it is unclear. 

 

yunism
New Member

Expired stock options

did you find a solution? I'm having the same issue, is showing my gains as losses because I choose "Expired" 

GeorgeM777
Expert Alumni

Expired stock options

If you sold an option and collected a premium and the option expired (and was not assigned), then you should select "Sold" rather than "Expired."  When selecting Expired, TurboTax views an expired option as worthless because from the buyer's perspective, the option did expire worthless.  To the seller of that option, the premium received represents the proceeds and the cost basis would be zero.  If there were commissions/fees paid in connection with effecting the option then those commissions/fees are part of the cost basis and can be entered into TurboTax in the appropriate field.

 

@yunism

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