I exercised vested non-qualified stock options from a previous employer in a cashless sale and received the appropriate W2 from that employer with the proceeds taxed as ordinary income. I also got the 1099B from broker but I believe the cost basis is incorrect. My understanding in a situation like this is that cost basis should be FMV less commissions, not the option strike price (which is what broker reported). See TurboTax website link to this topic(Example 2) - https://turbotax.intuit.com/tax-tips/investments-and-taxes/non-quali[product key removed]ns/L8zsxRi7B. It appears that TurboTax does not check for this (there is no 8949 form in final package) and I appear to be being double taxed on net proceeds (as ordinary income) and as a short term capital gain on same amount (I can't figure out what TT is doing in background). a) Am I right in my understanding of what cost basis should be and b) How do I adjust this in Turbo Tax (I couldn't find anyplace to adjust the cost basis for what I believe to be a misreported number by broker to IRS (and what will IRS do with conflict?). I am using Premier version. I don't mind paying my fair share but I feel as the results for TT stand now I am being double taxed on this transaction.
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