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February 14, 2021
Question

How do I fix my 1099-B flagged for a lower limit higher than the sale price?

  • February 14, 2021
  • 2 replies
  • 0 views
my 1099-B worksheet has a number of entries with a negative number for the cost basis, proceeds are zero, and realized loss equal to the cost basis.  Turbotax is flagging this as an error.  What do I do?

2 replies

JohnB5677
February 15, 2021

Turbo tax does not allow negative numbers in 1099-B box 1d

 

Some brokers  now reports losses of short options on 1099B as a negative number for proceeds in box 1d and a zero value for cost basis, rather than separate values for cost basis and proceeds that show a loss. 

 

The broker explanation is: "We are now updating our reporting of short options on the 1099-B to reflect how the IRS is now requesting that these transactions be reported.  In this new format, the cost basis and proceeds for short options is consolidated into Box 1d in a net amount."

 

To be able to post a negative value to form 1099-B box 1d follow these steps.

  1. Select the option for a 1099-B
  2. Select to type it yourself
  3. Enter Bank
  4. I'll enter one sale at a time
  5. Enter the stock data and leave 10d BLANK
  6. When you hit Continue you will get a RED error message
  7. At the bottom of the screen select Allow me to continue with incomplete information. [Continue]
  8. Any less common items will be blank.  Select Done
  9. No this is not employee stock 
  10. Select the last item An adjustment is required for reasons not already covered.
  11. Enter the negative number that you had in Box 1d.
  12. This will complete the transaction.

From <https://turbotax.response.lithium.com/console/agent/5784093?>

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fanfare
Employee
February 15, 2021

its a battle with the brokers and I suspect Turbotax is going to back down.

fanfare
Employee
February 15, 2021

the simple solution is to use aggregation.

covered transactions without adjustments  don't require 8949 and no mailing is necessary.

There is no reason to import or key in those transactions.