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Client has W2 with a code V which he paid tax on . 1099B reflects sale of options which was already included in the W2 and the taxes were paid. How do I put on sch d

rmdukat
Level 3
 
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itonewbie
Level 15

The bargain element included as wages would have established basis.  So long as the purchase and sale are handled by the employer's custodian broker, this should have been properly accounted for.  If it's a same day exersale, your client might have a small gain or loss, primarily for transaction fees (and likely minor fluctuations in selling price).

Just make sure you examine the option grant/exercise documents, monthly paystubs, comp breakdown, and the brokerage statement carefully, to make sure all the numbers jive (as your client may not have sold all options exercised, some may have been from various types of options exercised in prior years, and some may have been acquired from the open market).

Otherwise, the reporting would be done the same way as regular shares on Sch D/F.8949.

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Still an AllStar

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2 Comments 2
itonewbie
Level 15

The bargain element included as wages would have established basis.  So long as the purchase and sale are handled by the employer's custodian broker, this should have been properly accounted for.  If it's a same day exersale, your client might have a small gain or loss, primarily for transaction fees (and likely minor fluctuations in selling price).

Just make sure you examine the option grant/exercise documents, monthly paystubs, comp breakdown, and the brokerage statement carefully, to make sure all the numbers jive (as your client may not have sold all options exercised, some may have been from various types of options exercised in prior years, and some may have been acquired from the open market).

Otherwise, the reporting would be done the same way as regular shares on Sch D/F.8949.

---------------------------------------------------------------------------------
Still an AllStar
BobKamman
Level 15

Jive means either a type of music or loose, meaningless chatter. Jibe means to be in accord; agree. To confuse matters, jibe also means to shift your sail from one side of the vessel to the other (sometimes spelled gybe). And gibe, which means to make taunting, heckling remarks, can also be spelled jibe.

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