I exercised company stock options last december - it was a simultaneous purchase and sale. The net gain is reported in my W-2 as income. It is also reported in my broker statement 1099-B. Here is the twister - the 1099-B forms states that this is a short term transaction for which the cost basis is reported to IRS. it has the same figures (net sale price, cost basis and net income) - the final number net income is the same (almost) as the income reported on my W-2. When I import this 1099-B into turbotax this is going to go into schedule D - how can I prevent paying taxes twice on this option exercise?
