Stock Option handling

[kluckie]

My son received stock options prior to the sale of his company which were paid out once the acquisition was completed.  He received a 1099B for the distribution with no cost basis.  I entered the total distribution with a cost basis of zero since he did not pay anything.  Is this the correct method of recording this distribution?  Would these already be part of his income on his W2?

[Mike9241]

most likely receiving the stock options resulted in compensation being included in his taxable wages on his w-2 which would be his basis.