In 2020 I exercised ISO stock options. I paid roughly $80,000 dollars in taxes in 2020 due to exercising these option, but I didn’t sell any of them.
Last year, in 2022 I sold 2,350 of them for an average price of $25.40.
The taxes I paid in 2020 was based on a fair market value of $35.00. This means that i paid taxes on stock worth $35.00 but when I sold it it was worth $25.40. $25.40 - $35.00 = $9.60 per share. At 2,350 shares that a different of $22,557.25.
Fidelity has given be a 1099-B form which is what i have entered into turbo tax. However that assumes that i purchased the price at $2.38 which is what was on my 3921 form from 2020. The 3921 form values were
Box1 (Date option granted)=7/31/2018.
..
Box2 (date option exercised) = 9/11/2020.
..
Box3 exercise price per share)= $2.38.
..
Box4 (fair market value per share on exercise date) = $35.00.
..
Box5 (no. of shares transferred) = 10,180
..
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I need to know how to deduct this amount so that I am not paying taxes on stock that was sold for less than I exercised at.
