Form 8949

[cthury]

I sold stock option last year from my company.  I have the 1099-B for last year's transaction and the 3922 from when the stock was purchased.  Now I just received an 8949 stating that part of the purchase price was actually included in my W2 salary.

I did NOT see this scenario as an option while entering this info into TurboTax.  

Do I have to go into Forms, find the 8949 form, and manually Override the values TT put into column g?  Yes, make sure the code in column f is set to 'B'.

Or should I just enter the cost basis from the 8949 sheet that will be populated into column e?

I'm hoping this makes sense.  

Thanks in advance.

[DavidD66 · Accepted solution]

If you exercised a non-qualified stock, the bargain component (the difference between the amount you paid, and the market price) is considered ordinary income and is included in your wages and reported on your W-2 box 1.  Your cost basis is the market price at the time you purchased it, and not the exercise/strike price that you paid.  Reporting rules require the broker to report the cost basis as the strike price.  Therefore, you have to adjust the cost basis when you are reporting the sale.  You will need to edit your transaction.  There is a page in the 1099-B entry section, after you enter the transaction, that says "Select any less common adjustments that apply".  One of those options is "The the cost basis on my statement is incorrect"  Check that box, and click continue.  That will trigger the program to open a box where you will enter the "Corrected cost basis".

[cthury]

Perfect - Thank you.  

[rogpeg]

DO I  LIST WASH SALES SEPARATELY  OR  INCLUDE THEM WITH THE ENTIRE SALE?

[cthury]

I'm not familiar with Wash Sales, so I cannot help.  Hopefully someone else reading these can assist.

[GeorgeM777]

No, list the wash sales separately.  Wash sales are unique in that the loss while realized is disallowed.  If you decide to repurchase the stock involved in the wash sale, you will need to add the disallowed loss to your cost basis.  Knowing the amount of the disallowed loss is very important particularly if you should re-purchase the stock at another broker as that broker will likely not have all of your trade information.

@rogpeg