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?
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1 Best answer
DDollar
Expert Alumni
Jun 1, 2019 6:41:05 PM
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.
1 Replies
DDollar
Expert Alumni
Jun 1, 2019 6:41:05 PM
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.