I have a question about how Nonstatutory stock options affect a capital loss carryover. Here are the details of my situation:
- Grant price = $100
- # of shares = 225
- Exercise price = $205
Shares were exercised and sold on the same day for cash (~$7500 for taxes, ~$16000 net proceeds). These amounts are also correctly reflected in my wage income in my W2
On my 1099-B, I have the following info:
- Proceeds (1d) = $46125
- Cost basis (1e) = $22500
- Gain/loss (not reported) = $23625
However, Turbotax is showing that my capital loss carryover from a previous year (~$40k) has been reduced by $23.6k to $13.4k (which includes the $23.6k "gain" from the option sale + $3k from previous year carryover), which doesn't make sense because this is not a capital gain. Can someone confirm this is the correct behavior, and if not, provide info as to how to correctly account for this ? Thanks!
