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Dividend paid on stock short sale

I paid out $500 of dividends for a stock I held short before I closed the position this tax year.

I understand I can add this $500 to my basis (my cost to purchase/cover). To do this I must override the imported gain/loss info I received from my broker. When I do this TurboTax throws an error and tells me that the override isn't supported for electronic filing. 

Am I missing something here? How do I record my investment costs for dividends paid out on a stock short sale.

  • Do you itemize on your return?
  • Yes
  • I believe I've found a workaround. Instead of over-riding the Sch D support form (Form 8949), I discovered that if I use to the "Step By Step" view and "Edit" the imported data, I can create a simple Supporting Details for my purchase basis, which would include a line for purchase cost and another line for dividend expense.

    Hopefully this will help someone else  - or maybe me, when I'm confused again next year.
  • There is a better way.  See below.
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