Import of Short Options that Later Expired or Were Sold is Cumbersome - Interactive Brokers Import

[derhawk]

I am forced to edit each and every transaction. They cannot be bulk edited. Miserable. In this case, TT makes it harder to do than if I did not use TT. Isn't it supposed to be the other way around?

Is there an easier way to do this?

Looking in the forums, this appears to have been an issue for years, at least with Interactive Brokers imports. The responses seem to be made by people that don't know what a short option position is, they only understand covered trades or long option trades. 

Help!

[Mike9241 · Accepted solution]

workaround. 

Don't import then you can enter summary totals either on line 1a of schedule D if there are no adjustments and the type is A (sales and cost basis reported to IRS). Nothing more needs to be furnished to the IRS. if there are adjustments or the type is B then they get reported on form 8949 in the short-term section as a single line item with code M. Code M tells the IRS this represents multiple transactions.  you are then required to complete form 8453 with the 8949 box check and mail in the 1099-B with the 8453 following the instructions for timely mailing. Turbotax should generate this form once code M is entered. it is not part of the e-filing. It needs to be printed out.  

MY broker Schwab - (are they reading this) does things screwy in that on the 1099B they reverse the sale and acquisition date for short sales. The short sale date becomes the acquisition date and the date closed or expired becomes the sales date.  Because they are coded as type A they appear in the short-term section 

of the 8949. The IRS looking at this because I deal in leaps would think they should be long term because the holding period as imported looks like it is over a year. in the earliest years I never changed the dates in Turbotax and the IRS has never raised an issue. Subsequently, I stopped importing and use box 1a so dates don't even show up.   

[derhawk]

This was the answer. Thank you! I'll add to this for others that instructions for how to do this can be found in this TT community here.