How do I calculate my NQSO cost basis?

[kidrik]

I exercised my nonqualified stock options when I left my previous employer in 2015.  I paid tax on the exercise price at the time.  I received a W2 for 2015 and another for 2016.  Both have amounts in Box 12 with a code of V.  Is my cost basis the original exercise price plus the compensation income from both W2s?

[DDollar · Accepted solution]

Yes, your cost basis is the exercise price, plus the amount of the "bargain element" that was included on your W-2 as wages in Box 1.