Short Sales of Stocks or Bonds
What is a stock short sale?
A securities short sale occurs when you borrow a stock or bond from your broker, sell it, and then give identical security back to the broker to cover or close your short position. "Selling short" is a method to profit from the decline in price of a stock or a bond.
What if I don't enter a "Date Acquired" for my short sale?
TurboTax needs the Date Acquired to properly calculate your gain or loss on the transaction. Sometimes the Date Acquired is later than the Date Sold. That's fine; as long as the holding period is one year or less, it qualifies as a short sale.
What if I sold shares short in 2011 and closed my position in 2012?
The short sale is not reported on your tax return until you close your position. So if you sold the shares in 2011 but closed your position in 2012, the transaction is reported on your 2012 tax return, even though you may have a Form 1099-B from 2011.
In this unusual situation, you'll need to attach a statement to your tax return that explains why your Form 1099-B doesn't match your Schedule D.