Hi -- thank you, here's some more context:
I exercised and sold shares of a private company via a company buyback on the same day — a same-day exercise and sale of Incentive Stock Options (ISOs), which constitutes a disqualifying disposition.
My 1099-B reports:
- Proceeds: $X
- Cost basis: $Y
- Wash sale disallowed: $0.00
- Gain: $Z
However, the spread between the exercise price and fair market value at exercise was already included as ordinary compensation income in my 2025 W-2 (Box 1). Per IRS rules for ISO disqualifying dispositions, I need to increase my cost basis by that spread amount to avoid being double-taxed on the same income. My correct adjusted basis is therefore $Y + spread, resulting in a small capital loss.
I have selected 'Incentive stock options (ISO)' as the investment type and entered the adjusted cost basis accordingly. However, my Form 8949 PDF preview is incorrectly showing the column (g) adjustment as a negative number with a wash sale code, rather than as a positive basis adjustment. This is wrong — there is no wash sale involved, and the negative sign means TurboTax is reducing my basis rather than increasing it, which would result in double taxation of income already reported on my W-2.
Can you advise how to correct the Form 8949 output so it properly reflects a positive basis adjustment for ISO compensation income already reported on my W-2?
