Imported 1099-B for TD Ameritrade. In section when TurboTax ask to review because cost basis zero, when select "options"/"expired" TT remove the whole gain, what to do?

[batawfic]

imported 1099-B for TD Ameritrade. In section when TurboTax ask to review because cost basis zero, when select "options"/"expired" TT remove the whole gain, what to do? This doesn't happen last year?

[DavidD66]

If there are problems with the import of your Form 1099-B, I suggest you enter category totals instead of individual transactions.  To do so,

• Click on Search
• In the Search Window type 1099-B
• Click on Jump to 1099-B
• Click Add more sales (if the account you were trying to download is showing, delete it first)
• Click on the box with Stocks, Bonds, Mutual Funds  and click on Enter
• On the Let's import your tax info screen, click on I'll type it myself at the bottom right of the page
• Enter your Broker, and click on Continue
• On the page with "Tell us about your 1099-B sales for this brokerage account" answer the question about employee stock & the number of sales, etc.
• click the button "Enter sales section totals" and click on Continue
• Locate your sales section totals on your 1099-B
• Enter your Investment Sales Section Totals and repeat till you have entered for each category.

After entering all your sales section totals,  Look for "Now we'll help you upload your 1099-B since the IRS requires a copy" and follow the instructions,  or you can mail a paper copy of your 1099-B to the IRS.  If you want to mail, click on "How do I mail my statement".

Take a moment to double-check that your statements are complete. For each sale listed, there should be:

•  - A Description
•  - Date Acquired
•  - Date Sold
•  - Sales Price
•  - Cost Basis
•  - Gain or loss for each sale
•  - A based on how the sale was reported to you and the IRS

 In some uncommon cases, there will be an adjustment code and adjustment amount.

 NOTE: Any sales summaries that include only Box A or Box D sales, and which have no adjustments to gain/loss, do not need to be included on a statement mailed to the IRS.

 Here's how to mail your statements:

 If you are e-filing your tax return, then mail your statements along with Form 8453 to:

Internal Revenue Service

Attn: Shipping and Receiving, 0254

Receipt and Control Branch

Austin, TX 73344-0254

If you are not e-filing, then mail your statements with your entire tax return to your local IRS office.

[batawfic]

Thank you. The issue is not in the import. The issue that TurboTax treated options expiration as stock sold. If I change the type under "What type of investment did you sell?" to Options instead of Stock non-employee. Then select expiring option, TurboTax remove the premium from being considered as a Capital Gain!

[fanfare]

delete that transaction and reenter it manually

Option write, expires:
Since you are short, the Date Acquired shows the date of expiration,

Since you have a gain, Date Sold is the same date.
as you have seen, TurboTax "Expired" doesn't work so enter zero in column e) cost,

You can add the text "expired" to your description if you wish.

@batawfic 

[batawfic]

@fanfare Thank you so much. Got it. But Tax wise what will happen if I left the select as "Stock non-employee" instead of "option". The manual means I need to enter 100+ transactions. So I left the imported and treat it as  "Stock non-employee" even thought they are options will that make any difference. Thank you so much again

[fanfare]

 I think "review basis zero" is just a warning.

Continue and see if TurboTax takes you to the next step.

@batawfic 

[fanfare]

if the cost, proceeds, date sold and Box category are correct. the description is not too important.

IRS is not going to be looking at it.

@batawfic 

[batawfic]

@fanfare it does accept my confirmation of zero cost base, I was only worried about taxing me differently if short stock sale vs short option premium, but it seems to be 40% always