I know there has been some great guidance on this site about SSAR's, but I am still having some trouble with the logic and wondered if someone could help check my tax scenerio...
Situation Details: I work for a Swiss company so currency in CHF (*used exchange rate to get to USD, so there are some rounding errors in the examples).
20Dec2017: Executed "Sell-To-Cover" on 318 SSAR shares at 245(CHF)/share.
Strike Price was 140.10, so gain is 104.90/share = 33,582CHF (~$33K), which resulted in 136 shares total. The ~$33K Income is included as Ordinary Income on W2 and shows in Box14 as a note.
This was a "Sell-to-Cover" exercise, so 45 shares were sold, resulting in $11K in proceeds, of which, $10,772 was used to pay taxes, ~$29 for Fees, and $136 paid out in cash.
Now I have a 1099-B that lists 10,913 as "proceeds" in Box 1d, Box 1e is blank, this is "Long term noncovered", and I am trying to determine the cost basis to report.
Q1: Is it correct that I entered 10,913 as Box1d proceeds, and then adjusted the Box 1e Cost Basis to be the 10,772?
Q2: If the entire $33K exercise was already claimed as Ordinary Income and taxed, why do I get an additional $10,772 reported as "Proceeds" on the 1099-B, and then have to report that again (seems like I am paying taxes again on the paid out cash)?
Any help appreciated!!
