itonewbie
Level 15

@BobKamman wrote:

When all else fails, read the instructions.

Form 1099-B instructions, Page 8

Box 1d. Proceeds
Enter the gross cash proceeds from all dispositions
(including short sales) of securities, commodities, options,
securities futures contracts, or forward contracts. Show a
loss, such as one from a closing transaction on a written
option or forward contract, as a negative amount by
enclosing it in parentheses.


That's different from what the OP told us.  The taxpayer didn't just sell options but actually closed to cover at a loss.  That's why proceeds are negative.  For options, I'd always refer to the detailed statements as the 1099-B just doesn't tell the whole story.

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