Investors & landlords

You are correct.  The cost basis is the amount you paid (discounted price) and the amount included in your income (difference between option price and FMV on the date of the exercise).

Information needed to complete the return:  

• Is this a statutory or non-statutory exercise? (Employer can provide)
  • If the employee is no long employed at the company at the time of exercise it is non-statutory.
• Form 3921 provided by the employer or a substitute document with the necessary information. See the Boxes numbers below.
  1. Date option granted
  2. Date option exercised
  3. Exercise price per share
  4. FMV per share on exercise date
  5. Number of shares transferred

TurboTax Desktop:

1. Personal Income > I'll choose what I work on > Income > Investment Income
2. Select Start or Update next to ISO Exercise and Hold
   1. For TurboTax Online: Less Common Investments and Savings > ISO Exercise and Hold
3. Select 'Yes' I bought shares of ISO stock in 2021 (if bought and sold within the same tax year it would be reported as a normal investment sale from your Form 1099-B- do not select ISO)
4. Select 'Yes or No' I kept the ISO stock through the end of 2021
5. Select the employer and confirm the correct taxpayer is selected
6. Select 'Yes' or 'No' depending on whether your received Form 3921 > Enter the information requested
7. Select 'Done' or add a second transaction if applicable
8. You will see the AMT adjustment if applicable