Nonstatutory stock option gain sale and offset for loss in other stock sale

[romanm07]

can nonstatutory stock option gain sale which employer reported on W2 be used to offset a loss from other market stock trade reported on 1099-B?

Turbotax on its own doesn't do it, so very dangerous situation.

[DavidD66]

For Non-Qualified Stock Options, when you exercise the options to purchase stock (but not before), you have taxable income equal to the difference between the stock price set by the option and the market price of the stock. In tax lingo, that's called the compensation element.  That amount is reported in Box 1 of your W-2.  If you don't sell the shares at the time of exercise, then they are just like any other stock investment.  Your date of acquisition is the exercise date.  You cost basis is the option price plus the compensation element.  If you are asking if you can offset the compensation element reported on your W-2 with losses on the sale of other investments, the answer is no.  The compensation element is not a capital gain and cannot be offset by capital losses.