1099-B Worksheet CHECK THIS ENTRY: Sales Price is not within the prescribed upper or lower limits

[ToddL99]

The IRS (and TurboTax) will not accept negative numbers in either the cost basis or proceeds fields. You will have to manually edit any imported negative entries in order to proceed with e return and e-file.

Starting with the 2020 tax returns, the IRS will reject any return filed with a negative number reported in the proceeds or cost basis fields for Schedule D. TurboTax is flagging these situations ahead of time before the return is filed in order to prevent the IRS rejection. Some brokers are still using the old convention for reporting negative values and have not updated their reports to match the IRS.   
  
The error message reported by TurboTax is telling you that the number entered cannot be negative. 
  
Gains from expired options are reported by entering the gain amount in the proceeds column and no amount in the cost basis column. This will result in a gain.
  
Losses from expired options are reported by entering the loss amount as a positive number in the cost basis column and no amount in the proceeds column. The end result here would be a loss.
  
 No negative numbers should be entered in either the cost basis or proceeds fields.   
  
If negative numbers have been imported through your brokerage statement, you will need to edit the entries to make the correction. 

@quantbone2020

[Arvid7207]

That solution works great when I change it using the Capital Gain (Loss) Worksheet but now throws twice as many errors on the review of the 1099-B Worksheet which is not changed by the first.  Buggie getting to the supporting form.

[critnm1745]

Thank you very much. I manually made adjusts and fixed all the errors--removed all negative numbers in proceeds column and entered same number as positive number in "Cost" column

!!!!NOTE MUST REPLACE ANY NEGATIVE NUMBERS IN PROCEEDS COLUMN WITH A ZERO OTHERWISE WILL GENERATE MORE ERRORS

[critnm1745]

Replace negative numbers in proceeds column with a zero and enter same number as positive value in "Costs"

[ramspeedkill1976]

I have abou 530 trades, how am I supposed to go manually all of it??

[MarilynG1]

@ramspeedkill1976 You can enter a Summary for individual Categories.  Click this link for instructions on How to Enter a Summary in Lieu of Individual Transactions. 

[hicksrandy]

I'm not a tax expert, but the IRS "Instructions for Form1099-B" states on page 8: 

"Box 1d. Proceeds
Enter the gross cash proceeds from all dispositions
(including short sales) of securities, commodities, options,
securities futures contracts, or forward contracts. Show a
loss, such as one from a closing transaction on a written
option or forward contract, as a negative amount by
enclosing it in parentheses."

This leads me to think if the TurboTax software would allow the use of parentheses, this would meet IRS requirements. 

[dumrinda]

Turbotax does not allow non-numeric characters other than $

[ReneeM7122]

You are correct, the IRS does instruct the use of parenthesis instead of a minus sign for negative numbers.  But for standard practice on tax returns IRS has provided clear language that instructs us to round up when the amount is 50 cents and over, and down when it's 49 cents and lower.  

To get around the error for wash sales, any amount that's 49 cents and lower should be rounded down to zero.  Then the error should resolve itself. 

Here it is from their website (under "Computations)": https://www.irs.gov/publications/p17/ch01.html  

Computations

The following information may be useful in making the return easier to complete.

Rounding off dollars.

You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

If you are entering amounts that include cents, make sure to include the decimal point. There is no cents column on Form 1040 or 1040-SR.

Equal amounts.

If you are asked to enter the smaller or larger of two equal amounts, enter that amount.

Negative amounts.

If you file a paper return and you need to enter a negative amount, put the amount in parentheses rather than using a minus sign. To combine positive and negative amounts, add all the positive amounts together and then subtract the negative amounts.

@hicksrandy

[fusor2005jhr]

Resolved:  Since the IRS does not allow negative entries, goto form section, form 1099-B Wks, On the right ( Quick Entry Table) all negative numbers (probably options) will be highlighted yellow, Copy the Sales Price (proceeds) into the Cost or other Basis column (check for accuracy), the go back to the Sales Price and replace the original entry with a '0'.  Then scroll down the quick entry and do this for all highlighted errors.  THIS WILL RESOLVE THE ISSUE.  The problem does not appear to be with TurboTax but your brokers import.  They obviously did not read the new IRS flyer code and make the corrections.

[sjsusce]

Until turbotax resolve the negative sale proceeds, I edit the "Sales Proceeds" and "Cost or other basis" fields. 

Go to Federal Taxes --> Wages & Income --> Stocks, Mutual Funds, Bonds, Other.

Click on Edit "broker", for mine it's TD Ameritrade Clearing.

Find the negative Gross Proceeds, click on Edit.

Change "Box 1d Sale proceeds" field to 0 and change the "Box 1e Cost or other basis" to the positive of the "Box 1d Sale proceeds".

ie Before Box 1d: -248.35  Box 1e: 0.00  After: Box 1d: 0.00 Box 1e: 248.35

The end results for Federal Tax Due and "State" Tax Due" should be the same.

[fusor2005jhr]

That’s pretty much exactly what I have done. However I do believe the fault is with TD Ameritrade as everyone posting it, including myself, had an import from TDA mostly for options. They are  giving you the data in the wrong fields as they must not have read the new IRS publication for no negative numbers. On the 27th I should receive my last import via Fidelity.  I expect that one to be correct.  The fact that you can make a correction in TurboTax tells me that the problem is not theirs.

[SamwiseSmeagol]

There's like 5 or 6 separate discussions going on for this same question in different forums. Could you consolidate the information in one place so the same questions and answers and clarifications and re-clarifications don't keep getting posted over and over? It's very confusing.

[ramspeedkill1976]

Thx, that fixed it

[fusor2005jhr]

You are welcome. It would be nice if TD Ameritrade got their act together and saved us all a lot of frustration.