Can I ask a follow up questions to the experts on this board? Thank you in advance for your time.
I received a W2 with $10k as a result of exercise of company stock option, and it was labeled as "V".
I also received a 1099B for the same stock option exercise, showing net proceed of $15000, and cost of $5002 (including a few cents a share of processing fees totaling $2), and it was categorized as "A - short term cost base reported to IRS" without the need for adjustment.
My understanding is that I should include the $10k from W2 as income; and then adjust 1099B base by adding the $10k to the $5002 cost so that I have a negative $2 as loss.
Question 1: Is this correct way of reporting in Turbo Tax?
Question 2: Will IRS understand why I added the W2 amount to the base of 1099B? Or do I have to explain it somewhere?
