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June 30, 2020
Question

I bought an 865$ option on RobinHood which expired, i did not sell any stock that year, so robinhood did not provide a 1099 form. How am i going to report this loss. There were no gains.

  • June 30, 2020
  • 1 reply
  • 0 views

Hello,

 

In Dec 2019 i bought an AMZN option for 865$ which was going to expire after a week. The price kept going down and after a week, on the expiration date, the price was at 0$ and the option expired. I did not sell anything, so basically it was sold(lost) by Robinhood at 0$ rate. Robinhood did not send me any 1099 documents about 2019 because they said: You will only receive a 1099 tax document from RobinHood if the proceeds from dividends exceed $10, the value of referral stock grants exceed $600 or you sell a position. If you don't meet any of these criteria, you won't receive a 1099. 

 

So basically I lost the $865, but how I am going to report that to IRS since RobinHood does not issue any 1099 form for my situation? Or i just don't have to report this at all?

 

Thank you.

 

    1 reply

    June 30, 2020

    you have a short-term capital loss.    so it gets entered using 1099-B wks. 

    line 1 code c

    line 2 check the no box

    line 4 enter the number of options, the underlying stock, strike price, and expiration date

    line 5a date acquired

    line 5b date expired

    line 6a 0 (zero)

    line 7a 865

     

    line 19a should show -865