YFG
Level 1

If the gain on sale from a cashless stock option exercise is already included in W-2 Income, how is the 1099B sales data recorded to avoid duplicate income?

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sjrcpa
Level 15

The amount in the W-2 is used as basis when reporting the sale from the1099-B


Ex-AllStar
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YFG
Level 1

The basis was already reported on the 1099-B when the stock options were exercised and sold. Because this was a 'cashless' options purchase, the Employer included the gain on the sale in W-2 income also. 

I used the Capital Gains(Losses) Detail Entry Worksheet to record the stock option exercise and sales transactions and increased the basis by the amount already included in W-2 income on Line 11-corrected basis.

Many thanks to sjrcpa!

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sjrcpa
Level 15

You're welcome.


Ex-AllStar
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