You must manually adjust the cost basis for the amount you paid ($2.38 + amount included in taxable income on the day of exercise =$35 total per share based on your comments above).
You are allowed the full cost basis at the time of sale which is all of your after tax money used to purchase them at exercise.
Go to the sale of this stock and make the cost basis adjustments for these shares.
- Search (upper right) > Type 1099b > Click the Jump to .... link
- Edit beside the appropriate sales
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
