rcherenson
Level 4

Just seeking a little advice re a client who exercised stock and sold it within 48 hours.

The discount amount is reported on her W-2, included in her income and taxed (with the ISO portion also noted in Box 14). She used a 3rd party to sell her stock who did not issue a 1099-B.

Just wanted to confirm I am reporting this correctly on the 1099-B worksheet:

Her proceeds are the gross exercise amount, cost/basis is the already taxed discount amount from her W-2, with the 8% fee charged by the broker who handled the exercise AND the 4.2% 3rd party dealer fees both reported as expenses on the continuation page. Reported as short term gain not reported to the IRS.

Thank you in advance for your reply!

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