Why can't sell date be before my buy date anymore on "naked" options? On these trades, you sell first

[Critter-3]

Use the  BLANK option for the date ...

[Anonymous]

my broker uses the closing data as both the buy and sell date and that's how it reports those trades to the IRS.  true dates don't matter because a short sale that is not hedged is always a short-term capital gain.  there is an exception if those options are regulated futures contracts under code sec 1256, then they get reported - no detail needed - on form 6781 and split 60% long-term 40% short-term regardless of the actual holding period.  

[fanfare]

In order to close a short you must go to the market and acquire some securities.

The acquired date is the date you closed the short sale.
For Stocks, the disposed date is two business days later (settlement).
Options settle in one day.

Note to those for whom it is not obvious: Date Acquired and Date Disposed refer to Columns (b) and (c) on Form 8949 that you will report to the IRS.
Your trade date is the date you closed the position and goes in (b). Settlement date must be calculated taking into account weekends and market holidays.

From this you can see that a simple short is always a short term capital gain or loss, no matter how long you are short.

[geemonee]

That is not correct.  With options I can I don't have to have a buy to close a position.  I can sell a call or put today and depending on what the underlying stock price is on the expiration date, I can simply let it expire.  So I have a sell date of today and technically a buy date of the expiration date.  That is how I've entered these options in Turbo Tax for years.  This year, there is an edit that is not allowing the buy date to be after sell date.

[fanfare]

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

This is a common misundertanding. Sometime it takes several years of rereading the IRS Pubs to finally see the light.

Please refer to IRS PUB 550 for how to report on 8949

Quote:

"If an option that was granted (written) expired, enter the expiration date in column (b) and enter “Expired” in column (e). Fill in the other columns as appropriate."

[fanfare]

Instructions for Form 8949.

"Column (c)—Date Sold or Disposed
Enter in this column the date you sold or disposed of the asset. Use the trade date for stocks and bonds traded on an exchange or over-the-counter market. For stock or other property sold short, enter the date you delivered the stock or property to the broker or lender to close the short sale."

[geemonee]

Thanks, but TT still not liking it.  I import all my trades into TT, and I now pulled out my Form 1099-B tax reporting stmt received from my broker.  All of my expired options where I sold first and never bought back show 1c) Date Sold or Disposed as the date I sold the call/put and 1b) Date acquired as the date the options expired, which is obviously after the date sold.  It will not let me enter Expired in 1e) Cost basis.  When I select Options as the investment type, it will let me enter Sold or Expired, but when I select Expired, it does not allow me to enter the proceeds from the short sale and thus it is a 0 net gain trade, which is not true either.  And when I select Sold, I can enter the proceeds and a cost basis of 0, but the dates are still not reflective of the actual trade.  I'm still stuck.      

[geemonee]

Here is a example from my 8949 generated by TT last year:

            1a.                                         1b.                  1c.               1d.              1e.

NFLX JUN 00352.500 2.0       06/18/18     06/12/18      151.54          0.00  

The 1099-B reflects the same type of dates this year.

[fanfare]

At tax time, you have the option to summarize your transactions by Sales Category.

IRS requires details to be listed on Form 8949,
or on your own forms (e.g. consolidated 1099-B) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize, you have to mail the transaction details to the IRS within three business days of IRS accepting your e-Filed tax return.(unless you have attached a PDF of the transactions details to your e-Filed return. TurboTax does not offer this feature).
Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.

---
As an active investor, be aware that your category Box A sales without adjustments do not require Form 8949, so there is no reason to import or key in those transactions.
Instead use the "enter a summary" option to put your numbers on Schedule D Line 1a.
--
If you have wash sales, it gets more complicated since those adjusted transactions have to be itemized on Form 8949 and the summary totals adjusted accordingly.

Enter the wash sales on Form 8949, then use the subtotal results on the bottom of that form to know how much to subtract. Be sure to NOT check the adjustments box in the summary window.
--
Alternatively, if entry of Wash Sales is too tedious,
summarize and check the box for adjustments and enter the disallowed amount.
This summary will go on Schedule D Line 1b.
You will be making the mail-in election.

[naraharisubba]

Hi,

I'm also having this problem in turbo tax this year. When I import 1099-B from my brokerage, turbotax complains that "date acquired is older than date sold". This is for all put writes(put options sold first and then buyclose or expired).

How did you resolve this issue in turbotax? Appreciate your help on this regard.

Thanks

[Minouch]

How did you resolve the put sale entry in TT.  I’m stuck as well.  Thx

[naraharisubba]

Please see this. 

https://ttlc.intuit.com/community/after-you-file/discussion/re-getting-an-error-date-acquired-is-aft...