My ISO options vested in 2022, in which I performed cashless exercise in 2022 itself.
Cashless exercise involved exercising the options at the pre-determined strike price, and selling the stocks at the market price on the same day. For example, on the same day, exercising 100 options of $5 strike price, getting 100 stock shares, and selling them at $10 market price. This resulted in $500 unqualified gains, which will be reported on W-2.
Hence, my gains were already added to my W-2 form, but when I imported the 1099-B form, the cost basis was still my strike price ($5 in the example). I modified the cost basis for each of the imported 1099-B transactions, line by line, to the market price ($10 in the example). This resulted in slight losses due to brokerage fees.
Questions:
1. Should I modify the cost basis of the imported1099-B transactions? Or should I not import the 1099-B, but modified another form like 8949?
2. Is there an updated step-by-step guidance on adjusting the cost basis? The steps were obsolete at: https://ttlc.intuit.com/community/taxes/discussion/turbotax-is-double-counting-income-from-the-sale-...
