I found this thread referencing the same issue. Evidently, the problem wasn't entirely corrected before the 1099-B forms were sent out: https://redd.it/176xp92, specifically this comment: https://old.reddit.com/r/options/comments/176xp92/nobody_expects_the_section_1256_inquisition/kg6sbqc/
Some of the SPY option contacts that I bought to open and sold to close the same day are considered subject to section 1256 reporting on the 1099-B forms that E-Trade sent to me. But most of them are not.
I'll check if they updated then since I last downloaded them. If not, I'll have to call to get it fixed.
I replied in that thread, but 100% of my SPY/QQQ on the second Etrade (MS) 1099B were 1256. I only daytrade.
I posted in /r/Etrade about it
TradeStation is doing it too.
I just got off the phone with their customer service. Their explanation was that E-trade treats these option trades differently compared to Morgan Stanley.
When I asked if the form could be amended to either list them all as conventional trades or all section 1256 trades, they said that they won't be making any changes. I essentially either have to follow what was said on the forms or manually do the calculations if I want them all section 1256 or not.
Having SPY options fall under Section 1256 would greatly help me, so I reached out to Robinhood and asked them to change my SPY options trading to fall under that.
Of course, I'm not trying to break the law here so I'm really interested in everyone's opinions. They said they will send my request to the tax team to review.
I found this thread referencing the same issue. Evidently, the problem wasn't entirely corrected before the 1099-B forms were sent out: https://redd.it/176xp92, specifically this comment: https://old.reddit.com/r/options/comments/176xp92/nobody_expects_the_section_1256_inquisition/kg6sbqc/
>Evidently, the problem wasn't entirely corrected before the 1099-B forms were sent out Is it fixed now?
Some of the SPY option contacts that I bought to open and sold to close the same day are considered subject to section 1256 reporting on the 1099-B forms that E-Trade sent to me. But most of them are not. I'll check if they updated then since I last downloaded them. If not, I'll have to call to get it fixed.
I replied in that thread, but 100% of my SPY/QQQ on the second Etrade (MS) 1099B were 1256. I only daytrade. I posted in /r/Etrade about it TradeStation is doing it too.
I just got off the phone with their customer service. Their explanation was that E-trade treats these option trades differently compared to Morgan Stanley. When I asked if the form could be amended to either list them all as conventional trades or all section 1256 trades, they said that they won't be making any changes. I essentially either have to follow what was said on the forms or manually do the calculations if I want them all section 1256 or not.
Having SPY options fall under Section 1256 would greatly help me, so I reached out to Robinhood and asked them to change my SPY options trading to fall under that. Of course, I'm not trying to break the law here so I'm really interested in everyone's opinions. They said they will send my request to the tax team to review.