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First item of confusion is that if the net proceeds/profit is added to the cost basis, it may not be the same number as the " cost basis " reported by the 1099-B to the IRS...which might be a problem.

Also, the W2 is not itemized to reflect what that exact number was that was part of the gross salary, though it might be found upon getting copies of all paystubs and digging a little further.

Last item of confusion is if the net proceeds/profit reported on the W2 is added to the "options price" it won't be a per share price as its a total figure. Do you just manually figure it out and divide by the number of shares involved?


The wage income from the transaction is included in Box 1 of the W-2. It is also separately stated in Box 14 with a code V.

You're confused because you insist on thinking about net proceeds. This number is totally useless when completing the Schedule D entries. Go back and read again what you've been told about how to figure basis.

Phil
Rule Your Retirement Home Fool
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