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.

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1 Best answer

New Member

Jun 1, 2019 3:08:58 AM

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.

New Member

Jun 1, 2019 3:08:58 AM

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.

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