Exercise ISO before stock split

[bcqa33]

So I exercised some ISOs last year and did a same-day sale of them.   Then I exercised some more but held onto them.  Then the company stock split 3 for 1.   When I got my 1099-B from the broker, it listed the quantity sold + price at the before split value.  But when I got my documents from the company, it showed everything in terms of the after split values.  i.e. 30 shares instead of 10, $100 instead of $300 etc.   Question is, under the Stocks, Mutual Funds, Bonds, Others section should I just put down the values from 1099-B, i.e. before split prices. But under ISO Exercise and Hold put down the values after the split or should I use the actual values at the time of the excercise?  The total $ amount is still the same at the end of the day, just the quantity and price are different.  What is the right thing to do?

[GeorgeM777 · Accepted solution]

Use after split values for the shares you sold.   If your 1099-B does not reflect post split values, and you entered the 1099-B as is, you will have to make adjustments on Form 8949 and Schedule D to reflect what happened post split.  You are correct in that the gain/loss amount will not change as long as the amounts used are consistent; however, the post split amounts represent a more true reflection of what happened.

Using the same analysis, in the ISO Exercise and Hold section, you probably should also include the post split amounts.  

@bcqa33

[bcqa33]

@GeorgeM777  so I should enter the number as though I sold post-split, i.e. 30 shares at $100, even though on the 1099-B it shows the pre-split values, i.e. 10 shares at $300, even though I did sell them pre-split?  Just making sure.  

[GeorgeM777]

No, and thank you for that additional follow-up.  The previous post was based on the assumption that when you sold your shares the stock split had already taken place, but that the 1099-B had not been updated with the post split information.   Therefore, whatever number of shares you sold, use that number times the sale price.  Another way to approach this is to review your trade confirmations for the transactions you are reporting.  The trade confirmations should have been produced on or about the time of your sale and hopefully those are available for your review.  

@bcqa33