1099B Reporting of Call and Put Option Losses

Forum|Forum|5 years ago
February 14, 2021
4 replies
0 views

Fidelity reports the loss on call and put options in the proceeds column on Form 1099B. This negative number is creating an error in Turbo Tax and keeps me from filing. Fidelity has reported it like this in the past and there weren't any problems with Turbo Tax. If I try and work around it, the tax return proceeds and basis will not agree with the 1099B numbers. Any suggestions?

Best answer by DavidD66

The IRS no longer allows for the reporting of proceeds on a 1099-B to be negative. If your broker has reported your proceeds as a negative, you can contact them and ask them issue you a corrected 1099-B. If you downloaded your 1099-B, you can input manually. If you have a lot of transactions, you can report sales section totals. After entering your sales section totals you can upload a copy of your Form 1099-B with the trade details, so you won't need to worry about your input matching the IRS records.

DavidD66Answer

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

fanfare

Employee

search the forum here. you will find a big brouhaha over this issue.

SamwiseSmeagol

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/1099-b-doesn-t-support-negative-value-in-box-1d/00/1862466

but there's 5 or 6 others

DANMAN3Author

I deleted the import and entered everything manually. I worked around the issue by including all option transactions with other sales and reported them as a summary total on line 1a, Schedule D. I had a few wash sales which had to be listed individually. This way the totals shown on Schedule D will agree with the totals on 1099B.

yooperg

TT 2022 desktop allows negative proceeds, like is reported on my e*Trade 1099B. (For covered call options). However, it does not allow these to be summarized to put on Schd D line 1a. If you summarize them in the step by step input, it puts them on form 8949. I think this perhaps is because in past years IRS did not allow negative numbers on Scd D line 1a for e-filing. Not sure if the IRS changed this for 2022, but TT didn't. At least you can report a negative proceeds on form 8949.