1099-NEC cost basis for non qualified stock sale?

[taxnovice71]

Tax experts need your assistance please!

I had to sell back non qualified stock options to my previous employer when i left the company for $1100. They sent me a form 1099-NEC with that same amount.   I originally purchased the options for $1000.  I figure my cost basis to be at $1000 but cannot find where I can enter this information.

Any advice would be greatly appreciated!

[Laura_CPA]

Hi taxnovice71,

Happy to assist you with your question! The cost/basis information for the sale of stock it is usually entered in the following: https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/where-do-i-enter-a-st...

You mentioned a 1099-NEC was issued to you, did you receive a 1099-B? 

Cheers,

Laura 

[Esther M]

To report this sale follow the steps below:

1. Log into your Turbo tax account.

2. Go to Federal

3. click on Income & Expenses

4. Select Investment and Savings

5. Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other, 

6. Click Start

7.On the "Time to kick off your investments!" click Okay

8. On the page "Relax, We got It" Click Continue

9. On the "Let's import your tax info", select "Enter a different way"

10. On the "Ok, let's start with one investment type", select Other

11. On the "Tell us more about this sale" enter your former employer's name...XYZ company

12. Follow the interview questions.

You should be good.

 

[taxnovice71]

Thank you for the follow up, this is where i am struggling, i did not receive a form 1099-B. My inclination was to to skip the 1099-NEC and just fill out the information i have for the 1099-NEC as a 1099-B, if the IRS flags that would give me the opportunity to explain that to them. I'm not sure if that is the prudent way to go though..?

[Esther M]

Hi Taxnovice71,

In this case you can skip the 1009-NEC but keep it for your records in case the IRS requests a copy. Just follow the above steps and enter the information on Form 1099-NEC . 

[Laura_CPA · Accepted solution]

Hi taxnovice71, 

Checkout #3 for your particular situation in this article https://www.forbes.com/sites/brucebrumberg/2020/03/09/its-complicated-five-big-mistakes-to-avoid-wit...

If you did not receive a 1099-B from the brokerage institution, what you can do to verify is create an IRS online account at IRS Account  and pull a Wage and Income Transcript (it is instantaneously done), you'll find all of your income in that transcript. Keep us informed.

Cheers,

Laura 

[taxnovice71]

Thank you both so much I really appreciate the help and replies!  Big virtual hugs 🤗 

[Laura_CPA]

Anytime, thank you!