Options showing incorrectly as stock (had to manu...
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schwark_taxes312
Level 1

Options showing incorrectly as stock (had to manually correct)

My return has been done for weeks, and I was simply waiting for TurboTax to allow payment date beyond 4/15/21.  Today that finally happened so I decided to run one more "federal review", even though nothing had changed in my return.  Turns out it spit out 30 errors that needed "fixing".

 

Upon reviewing  what they were, all of my covered calls that I sold (and had expired) had been categorized as stocks and also, the zero cost basis triggered a requirement to click through this was okay.

 

I did live chat with a tax specialist / expert who had me reimport my 1099-B from Charles Schwab and these errors persisted.  I had to go to EVERY SINGLE covered call transaction (30 or so) and change it from "stock" to "option" and select if it was sold or exercised.  Then I had to click through that I didn't want to change the zero cost basis (which sold options don't have).

 

My questions / issues are:

1) this error was not there a few weeks ago.  Why did my previously reviewed return have zero errors

2) why was the import, which is supposed to save me time, require me to go into so many individual transactions to both select things that should have been on the import and were there with initial import in February

3) why are sold call options triggering a question about zero cost basis.

 

Seems that either the TurboTax code has an issue or the Schwab import has changed.  I had to manually change so many which really doesn't instill confidence in the import.

3 Replies
fanfare
Level 15

Options showing incorrectly as stock (had to manually correct)

Turbotax has so many bugs/issues with stocks (or options) this year, it's astounding.

Try another tax software provider.

fanfare
Level 15

Options showing incorrectly as stock (had to manually correct)

"  Then I had to click through that I didn't want to change the zero cost basis (which sold options don't have)"

 

when you sell an option that expires, proceeds is the amount you received and your cost is zero.

You should have left those alone.

If you closed out the trade early, cost is what you paid to to do that.

schwark_taxes312
Level 1

Options showing incorrectly as stock (had to manually correct)

i did leave it alone.  My comment was that TT didn't seem to like that I had proceeds without a non-zero cost basis (as all expired unexercised).  I didn't have data to change, but just had to click through 2 screens of "are you sure" for every transaction. Something I didn't have to do the first time I imported because TT seemed to handle options correctly in February.

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