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How do I enter nonstatutory stock option gain reported in box 12 code V and included in box 1 on the W-2. Then the same gain is on a 1099B?

 
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4 Replies 4
sjrcpa
Level 15

The income included in that W-2 box is part of the basis of the stock. The other part of the basis is the amount the client paid.


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taxlady2008
Level 3

The number I have under V for nonstatutory sock options on my W-2 matches the gain being reported by the broker.  How do I report this on Sch D since it is already taxed? 

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itonewbie
Level 15

Your client still needs to report the sale of those shares acquired from the NQSO, just like any other stock transactions.  The basis is computed like Susan explained and that's what you report on Sch D/F.8949. 

Like you said, your client had already been taxed on that income, i.e. the option price paid with after-tax dollar and the bargain element captured in Box 1 of that W-2; that's exactly how basis is established.

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Still an AllStar
itonewbie
Level 15

The tax effect is that, if your client did an exersale, there may be a small gain/loss from transaction costs and share price fluctuation within the day.  If your client had held onto those shares for a while before the disposition, there could be a larger gain or loss, depending on how far the share price had moved since the exercise.

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Still an AllStar