Solved: How do I account for broker's commissions on exercised NQ stock options?
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

How do I account for broker's commissions on exercised NQ stock options?

I exercised nonqualified stock options, same day sale, and all the income and tax withheld was reported on my W2 as expected.  There was also approximately $1000 in broker commissions, but the net proceeds reported as income on my W2 was not reduced by the broker expenses as I would have expected.  How do I properly account for this since it's a same day sale?  I did not receive a 1099-B either.

1 Best answer

Accepted Solutions
Highlighted
New Member

How do I account for broker's commissions on exercised NQ stock options?

  • Please report the transaction under Federal Taxes>Wages & Income>Investment Income>Stocks Mutual Funds Bonds Other.  
  • Select No on the screen Did you Get a 1099-B
  • Select Nonqualified Stock Option Plan on the next screen
  • Identify the employer on the next screen
  • Select same-day sale on the next screen
  • Enter the sales information on the next screen
  • On the next screen, check the box "I paid sales expenses not reported by my broker" and enter the commission in the box that appears.

View solution in original post

1 Reply
Highlighted
New Member

How do I account for broker's commissions on exercised NQ stock options?

  • Please report the transaction under Federal Taxes>Wages & Income>Investment Income>Stocks Mutual Funds Bonds Other.  
  • Select No on the screen Did you Get a 1099-B
  • Select Nonqualified Stock Option Plan on the next screen
  • Identify the employer on the next screen
  • Select same-day sale on the next screen
  • Enter the sales information on the next screen
  • On the next screen, check the box "I paid sales expenses not reported by my broker" and enter the commission in the box that appears.

View solution in original post

v
Privacy Settings