ThomasM125
Expert Alumni

Get your taxes done using TurboTax

The IRS does not need to know how you arrived at your cost basis, so you don't need to report to them that your cost basis includes income reported on a form W-2. You do need to insure that the ordinary income portion of the transaction gets reported as income on your tax return, but that normally comes about by virtue of your employer reporting it on your W-2 form, in box 1.

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