reconcile 1099B and W2 reporting of stock option exercise

[Tax2019Pay]

AmyC: Thank you for the expert advice - I really appreciate it.

Just want to confirm your guidance:

In my case of exercising company stock option 10 times from the same grant lot and sold immediately after each exercise, the 1099B showed these as short-term covered without adjustment, I can (1) summarize the total proceed and cost base without itemizing each of the exercises and sales, (2) I can add W2 Box 12a amount to the 1099B cost base - the IRS should be able to figure this out as Box 12a showed "V" for non-statutory stock option - and the addition of W2 Box 12a to the 1099B cost base is not considered as an "adjustment" in as a sense like what IRS considers as "adjustment" like wash sale etc, (3) I do not have to send/mail in 1099B as the IRS has already received it from the brokerage firm,  and (4) I should keep all records for 3 years in case that the IRS has any questions.

Did I summarize correctly and do you agree with the above as a clear approach to efile in Turbotax? 

Thanks again.

[RobertB4444]

@Tax2019Pay  You summarized @AmyC's advice nicely and you got it all right.

[Tax2019Pay]

Hi RobertB4444:

If one has 10 short term covered stock sales, 8 without the need for adjustment, 2 with disallowed wash sales, what is the best way to handle the reporting in TurboTax:

Option 1: enter one sale at a time.

Option 2: enter a summary of short term covered sale for the 8 transactions without the need for adjustment, and then enter the 2 remaining sales with disallowed wash sales.  Can you group the two disallowed wash sales or do you have to enter the sale one at a time?

Since the brokerage firm did not provide a summary of the 8 transactions without the need for adjustment, will a summary entry be confusing to the IRS? In other words, would it be better to enter one sale at a time? 

Thanks.

[Mike9241]

not knowing what version of TT you're using.  but in at least some versions there's the 1099-B form which allows you option 2.   at the top there is a place to enter just summary totals for the 8 trades 

then there is the capital asset sales worksheet where you can enter the 2 wash sale trades.