Are we talking ISO or ESPP here? Two entirely different animals.
Based on what you stated as to strike price vs. FMV I'd say you bought the stock through an ESPP that offered a 15% discount.
But now the $15,088 on the W-2 doesn't make sense.
Clearly this would be a disqualifying disposition and a disqualifying disposition results in "compensation" that's the "spread" between the strike price and the FMV. ($1.08 - $92) x 3,250 = $520. So I'd say that the W-2 should show $520, your basis for calculating gain or loss is ($2,990 + $520) = $3,510, and your capital gain is the proceeds of $15,088 (I assume that's (3,250 x $4.64246) with that $4.64246 being the negotiated selling price) MINUS $3,510 = $11,578.
I'd say you have $520 of compensation and $11,578 of short term capital gain for a total income, (all taxable at ordinary income rates) of $12,098. I have no idea what the W-2 income would be stated at the same amount as the proceeds - that is the proceeds from your sale, right?.
But I guess if you report $15,088 of W-2 income, and then add that $15,088 to your $2,990 for the basis and then subtract that basis from $15,088 of proceeds for a loss of $2,990 you come back to the same $12,098. I don't understand it, it might in the short term work against you, (if you have other net capital losses you could be in the position of not being able to deduct them all this year), but it is the same amount of income.
