You have to report the form 1099-NEC as the difference between your exercise price and the FMV at the time is taxed as ordinary income.
When you sell the stock, your cost basis is $40k ($10k exercise price + $30k taxed income) and your capital gain is $60k. When entering your 1099_B, you should enter $40k as your cost basis.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
