Tom, thank you for the thorough response. Follow-up question please on the qualified case: It seems that I can avoid the cumbersome 1099 approach if I declare that the $995 is not in the W2 by using the "view form" and therefore it will be added to line 7. Summary: proceeds $12,145.25, gain=$6307.91, basis = $5,837.34 and income not included in W2=$995.36. Do you agree?
