Hi, Tom:
I have tried to ask the question about non-qualified stock option exercise on this board but did not get a clear response; mostly due to the way that I have asked questions. Reading your responses to various questions, you seem to be the expert that I am looking for. So thank you in advance for educating me on this topics.
Here is the background. I had 1000 shares of company stock option granted on July 15, 2020 and vested on July 15, 2021. I exercised the options in 100 share lot x 10 times between Jul 15, 2021 (each time with immediate sale for cash). In January 2022, I received a W2 (with box12a showing "V") from the company for the gain; and I also received a consolidated 1099B with a summary of the total proceed and cost base, and as well as detailed information for each of 10 option exercises. These option exercises/sales were reported as short term covered without the need for any adjustment. Since the 1000 shares of option came from the same lot, so the cost base was the same.
I entered the W2 information and 1099B information as shown in these tax forms. But I need to add the W-2 amount to the cost base number on 1099B to avoid being double taxed. My problem is that I do not know how to do that to make it clear to the IRS.
Am I allowed to summarize all these 10 option exercises/sales into one consolidated proceed and one consolidated cost base, or do I have to enter one option exercise/sale at the time and enter 10 times? If I am allowed to summarize, how do I add the cost base from W2? In the summary mode, there is nothing in TurboTax allowing me to do the cost base adjustment - I guess that I could just add the W2 amount to the 1099B cost base - but wouldn't IRS be confused by this? If I enter one option exercise/sale at a time, TurboTax will ask me if it is an employer stock option and lead me to run through a worksheet to do the adjustment but that is 10 worksheets to go through.
I am trying to find a best way to do it clearly and in a most simplified manner. Thanks in advance.
