I exercised stock options; proceeds and cost basis were reported on the 1099. The income from the exercise, and the taxes withheld, were reported on my W2. I adjusted the cost basis to include the reported income, showing a net loss of $5067, which is the difference between the reported income and the net proceeds from the exercise. (The company held back a large number of shares to cover taxes, so the income reported on the W2 includes proceeds from the sale of all the options, whereas the brokerage statement only includes the shares not held back.)
Now, TurboTax is showing a capital loss carry forward of $2067, but this doesn't seem right. I made money on the sale! Do I have to do anything, or is this legit?
