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ISO Exercised - Company Acquired - Got first disbursement this year and two more disbursement remaining for 2019 and 2020. How to report it?

Hi,

 

I have a following situation w.r.t ISO which I exercised from my former employer.

 

I exercised let say 5000 stocks at $1.00 in year Jan 2016

Then this company got acquired by another company and approximate price/share was shown in the documents as $1.96/share.

 

Now I got 1st disbursement for $8200 and I have been told I will get two more disbursement in year 2019 and 2020. I don't know the exact amounts but getting monthly statements which has some amounts mentioned on it as indemnification Escrow amount.

 

I did receive 1099-B wherein it shows net proceeds as $8200. How do I report cost basis here correctly considering I will be receiving 1099-B for next two year? I'm not sure how to proportionate number of shares in this year and next two years so that I show profit correctly and don't overpay or underpay my taxes?

 

Any help will be highly appreciated.

 

Thanks.

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1 Reply

ISO Exercised - Company Acquired - Got first disbursement this year and two more disbursement remaining for 2019 and 2020. How to report it?

Hi,

 

Bumping my query up again. Experts must have seen this situation?

 

Thanks.

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