Short (sold to open) Options Expire - TT won't allow bypass of review

Forum|Forum|3 years ago
April 14, 2023
2 replies
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I sold to open many call and put contracts in 2022. This yields a profit when they expire worthless.

TurboTax does not allow entry of a profit if the "expired" selection is chosen.

TurboTax forces a review of these transactions because the cost basis is zero when "sold" is selected.

How do I enter short options contracts that expired for profit? Can "NEEDS REVIEW" for each item be bypassed in some way?

TurboTax Premier Online

DavidD66

For a short option, think in terms of opening and closing the position. If you sell a put in XYZ and your proceeds are $100 and it expires worthless, enter the transaction with a $0.00 cost basis, and proceeds of $100. If you bought to cover (closed the position), that is your cost basis. The date you opened the position (sold the put) is your acquisition date. The date the put expired, or the date you bought to cover is the date sold,

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Cheese0760Author

Yes. That is what I did.

1) I enter 0.00 as cost basis and proceeds as whatever the gain was.

2) I click "continue".

3) It takes me to a page to confirm that the cost basis of 0.00 as imported from my broker is correct.

4) I click "confirm."

5) TT takes me to another page to "Let us know if any of these situations apply to this sale." I select none of the above.

5) Continue again.

6) I'm now back at the page to review all of my transactions and the "NEEDS REVIEW" icon is still on the option I just fixed.

There is no highlighted error when I complete this process and I cannot proceed to finish my taxes while the "NEEDS REVIEW" icon is adjacent any of my transactions.

kishore_324

Is this issue resolved? I am facing the same "NEED REVIEW" issue with zero cost basis items (sold to open options that expired)

MoniqueLO_

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@Cheese0760