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Author: 2Be1000K One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121429  
Subject: Options & Taxes Date: 2/21/2000 9:07 PM
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Form 1099-B which I received from my broker (Scottrade) does not include option sales in 1099-B "Proceeds from Broker Transactions" section. And top of that page mentions that info on this page is being reported to IRS. On a separate page titled "Non-reportable Activity", form contains gross purchases and sales proceeds info for options. Is that how all brokers report? Has anyone used TurboTaxWeb to file return including option trades? How do you handle options in there?

Thanks
Ravi
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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29527 of 121429
Subject: Re: Options & Taxes Date: 2/21/2000 10:48 PM
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<< Form 1099-B which I received from my broker (Scottrade) does not include option sales in 1099-B "Proceeds from Broker Transactions" section. And top of that page mentions that info on this page is being reported to IRS. On a separate page titled "Non-reportable Activity", form contains gross purchases and sales proceeds info for options. Is that how all brokers report? Has anyone used TurboTaxWeb to file return including option trades? How do you handle options in there? >>

Options are not required to be reported on the 1099-B. You report options on Schedule D. I strongly urge you to get a copy of Schedule D and the instructions and understand this thoroughly before you try to figure out how to convey the information to TurboTax online or any other software.

Phil Marti
Tax Preparer

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Author: volchris Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29583 of 121429
Subject: Re: Options & Taxes Date: 2/22/2000 12:41 PM
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I strongly urge you to get a copy of Schedule D and the instructions and understand this thoroughly before you try to figure out how to convey the information to TurboTax online or any other software.
Phil Marti
Tax Preparer


I read through Schedule D and never saw where it specifically referred to how to enter options. As my option sales were at a loss, I am definitely including them on Schedule D. Two questions:

1. I entered them just as I did stocks (e.g., "1 INQJV" , meaning 1 INQJV contract, along with dates and amounts, etc.). Is this acceptable?

2. Because I am reporting proceeds that are not being reported to the IRS, my total sales figure will exceed those reported on 1099-B. Is that a problem, or is it only a problem if you report less than 1099-B?

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Author: stork1344 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29593 of 121429
Subject: Re: Options & Taxes Date: 2/22/2000 1:45 PM
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Option gains and losses are reported on Schedule D the exact same way as stocks and other capital assets. If an option expired worthless, you write "expired" instead of the dollar amount under sales price (in the case of options you purchased), or under cost or other basis in the case of options written. Your total sales amounts will exceed the amount reported to you on 1099B , which is ok. Previously, you had to explain any difference; you no longer do, unless the amount reported is less than the amount on 1099B
Bob

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