Thanks for your help TomYoung! Really appreciate it. Here are a few more details about the situation:
1. I am no longer at the company, I exercised the ISOs shortly after leaving the company in 2017. There is no compensation reported on my W2 for this, I only got a form 3921 for the exercise in 2017, and a form 1099B for the sale in 2018.
As a side note on form 3921, when I exercised my strike price was the same as the fair market value, so I had no AMT considerations.
2. The 1099B does not show the full amount of the sale. For simplicity's sake, let's say the sale amount was 100k. I received 95k in 2018 and the other 5k of the funds are being held in escrow. I will get half of those funds in 2019, and the final amount in 2020. The 1099B shows the 95k portion.
3. When I fill in the interview for the 1099B entry and put in the info for supporting Form 3921, it shows the full number of shares sold, not removing anything for the part still held in escrow. So to answer your question, just swapping the forms W2 and 1099B, no the compensation reported is not based on ALL shares sold.
Can you please help me understand (or point me to existing articles if I missed them) if I need to:
- Enter this as an installment sale and skip the 1099B? When I started to enter the installment sale information, it wanted some information from my 2017 taxes that does not exist, because the first 'installment" (sale and payment) happened in 2018.
OR
- Enter the 1099B and not worry about the cost basis (full) not matching the compensation reported (partial)? Not sure how that would play out for future 1099Bs if I get them for the remaining 5k amount.
