Turbo Tax doesn't handle short selling. That is, I've sold stocks/options short and acquired at a later date. The software wants date acquired before date sold. Help.

Forum|Forum|4 years ago
April 13, 2022
2 replies
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How do handle a case where date acquired is after date sold? That is, a short sale.

TurboTax Premier Online

Mike9241

should be able to enter the date of the short sale as the date sold and the date expired or closed as the date acquired. at least that's possible in Desktop Deluxe

fanfare

Employee

For a short sale, the correct Date Acquired is the date you closed the trade, or the date the option expired.

Some brokers report this correctly on your 1099-B, and some do not.

TurboTax 2021 has decided to monitor this which is I believe different than previously.

mordyvt

The only solution I found was to reverse the dates. Otherwise it stays in "Needs Review" and won't let you file. I don't think the TurboTax software is very efficient.

Mike9241

the closing of short sales is generally short-term gain or loss. reversing the dates may result in some of those short sales being treated as long-term unless all short sales are open for less than 1 year.