topic Entering Fair Market Value at Exercise for ISO stock I sold in Investors & landlords

Entering Fair Market Value at Exercise for ISO stock I sold

SelfTaxPreper — Wed, 11 Feb 2026 07:00:55 GMT

Hello,

I exercised some ISO shares 2 years ago and sold them in 2023. It's a qualified disposition. After I imported the transaction from etrade, the cost basis is correctly reported. Each share's strike price was lets say $1 and I sold the shares for $10/share. The cost basis for "Normal taxes" is $1 per share. However, when i exercised the shares 2 years ago, the FMV at exercise was $20. How do I tell turboTax about the FMV at exercise was $20/share so that I can recoup some of the AMT credits I paid when i exercised the shares? In Turbotax 2022 from last year, there was an option that started an "Employee Stock Transaction Worksheet", I don't actually see this same option in Turbotax 2023. Any help would be greatly appreciated.

Re: Entering Fair Market Value at Exercise for ISO stock I sold

KrisD15 — Fri, 01 Mar 2024 23:15:07 GMT

Please go to

"Other Tax Situations"

"Alternative Minimum Tax (AMT)

START

Select the first option "I exercised ISOs in 2023, but didn't sell the stock. Or I sold the ISOs that I purchased in a previous year"

CONTINUE to the second screen "Did you sell ISOs in 2023 that you purchased in a previous year"

Enter the adjustment as a negative number on that screen.

Re: Entering Fair Market Value at Exercise for ISO stock I sold

SelfTaxPreper — Fri, 01 Mar 2024 23:54:22 GMT

I am using the Desktop version of Turbotax Premier 2023 on a Mac. When I go to "Other Tax Situations" and then "Update AMT", I get the following screen:

None of the options are for ISO adjustments. I clicked through the second and third option and that's probably the closest to the thing you describe?

But not quite what I wanted. Last year it was clear that I was making an adjustment for a specific ISO batch of shares. Any other suggestions? Appreciate the help.

Re: Entering Fair Market Value at Exercise for ISO stock I sold

SelfTaxPreper — Sat, 02 Mar 2024 00:31:59 GMT

Found the answer here: specifically this:

Thanks this is what I needed. To give a more specific description for anyone else, I needed to check "enter them individually" after confirming it was an ISO sale. Then after checking the box that the cost basis is incorrect, I needed to check the field that said "I can't find it and need help" in regards to a supplemental form to the 1099-B. It seems this is because the broker I sold the stock with is not affiliated with the company that issues the original options... So they don't have any information other than the cost basis from when I transferred the options over.

This all led me to various prompts that allowed me to enter my 3921 form details from the ISO exercise. It appears this is doing what I need it to do.

Doing this allows you to fill out the necessary cost basis fix for AMT for each of your ISO transitions. Hope this helps others.