If I have sold a covered call option and it expired worthless. Where do I enter the premium I have received for selling the option as a capital gain.
In this year Turbotax, when I select 'Type of investment' as 'Options' and select expired, it only allows to Cost or other basis. There is no field to enter the proceeds i.e the premium.
042091
4 Replies
Anonymous
Not applicable
May 28, 2020 1:34:12 AM
lie and select stock. it doesn't matter. then you will enter the info just like you sold a stock with $0 cost. it is treated as a short-term capital gain.
fanfare
Level 15
May 28, 2020 3:06:30 AM
In previous times (CD/Download), marking an option "Expired" had no effect.
Now (Online) it makes things go from bad to worst.
Pretty sad for a "Premier" tax software product from a "top-tier" company !!
fanfare
Level 15
May 28, 2020 3:55:44 AM
Date Acquired on an expired short option is the date of expiry.
Date Sold is the settlement which is one business day later.
Options settle in one day.
ssedhain
Level 1
Apr 17, 2021 10:00:14 AM
I cannot believe the software is so buggy. Will put people into serious trouble if one trusts the software to do the right thing.