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Level 2
posted Apr 5, 2022 10:40:04 PM

TurboTax "Your Incentive Stock Option Sales Results" step computing incorrect long term gain

I have pre-IPO stock that I was granted many years ago. It went public last year and I sold it. For some reason, it is counting the gains as though I paid nothing for the options years ago, instead of the difference between the cost basis and net sales.

 

  • I have filled out a Form 3921, where I enter the exercise price per share, shares transferred, and fair market value.
  • I have also filled out how much I had paid for the shares, I believe when TurboTax asked for the cost basis.
  • In the section reading "Your Incentive Stock Option (ISO) Sales Results", it is computing its own "price paid" that doesn't match what I actually paid.

 

Any ideas where to troubleshoot?

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1 Replies
Expert Alumni
Apr 7, 2022 12:58:33 PM

Try just entering your stock information as a regular stock trade.  When you get to the screen where you have to designate the type of Investment, select Stock (non-employee) rather than ISO.  Enter your cost basis, sales proceeds, etc.  Then check your capital gain to determine whether the amount is consistent with what you expect the gain should be.  

 

@reticulating