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Subject:  W-2 Entries for Same Day Sales Date:  2/1/2000  5:17 PM
Author:  CheetahChrome Number:  26686 of 127753


In 1999 I exercised & sold (same day sale) a ton of options from the company at which I used to work. The options included both ISOs & NQSOs.

I'm trying to understand what amounts will show up on my W-2. As I understand it, since these were disqualifying dispositions, the "bargain elements" should show up in "Wages, tips, ..." on my W-2.

Is this correct?

Now, stick with me here ...

Since these were all same day sales, wouldn't the "bargain element" for each sale be the same as my "profit" on each sale?

This seems intuitive to me, but maybe I'm misunderstanding something. The reason I'm unsure is because my calculations of my profit on these sales is MUCH larger than the amount on my W-2.

I can understand there might be some difference in amounts, since the bargain elements might be calculated using the closing price of the stock, while my calculations were done using the actual sale prices for each transaction.

What am I missing?

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