Reporting covered call option transactions

[GeorgeM777]

In the example you provided, the tax result would be the same if you chose to report this covered call option trade as one transaction.    As one transaction, your purchase price would be $60 and your sale price would be $50, for a loss of $10.  In TurboTax, reporting both transactions, the net loss is the same at $10.

@suzy2guns

[cbarake]

Exact same issue I have. Federal is fine. Massachusetts has issues. I am snail-mailing it in instead of e-filing.

[suzy2guns]

Most of these posts missed the key ask and that is how best to file the S2O and B2C. The 1099 shows 2 transactions but recommendations here have been to report one transaction. Does it not matter that the transactions on my return would be different than the transactions on my 1099?

[fanfare]

@suzy2guns 

"buy to close", if listed separately from "Sell to open" for the same trade is just wrong. 

You have to combine those amounts into one short sale transaction.

See my reply above for how to report a short sale correctly.

OR 

you are looking at and jumbling two different trades..

[yobeansaregood]

this post is talking about selling a call option, when you write the contract. so the cost basis has to be zero. there is no cost, only gain. The original poster is describing a work-around for a glitch in the turbo tax software. Would love it if you fixed this