Non statutory stock option exercise

[Booger]

Does anybody know how to calculate the "basis" reported on Schedule D

for these type of options? The client's exercise was reported on his W2

(Code V). If I remember correctly, the gain or loss reported on Schedule D

should end up being a very small value.

Thanks in advance.

[imjulier]

You are right. The loss should equal the amount of the transaction fee, if there is one. I generally "plug" the basis to get the correct loss after entering info from the 1099B. Hope this helps.

Julie

[Booger]

Thank you, Julie.

[joanmcq]

Basis is amount paid for the shares + amount included in wages. Actually an easy calculation once you get used to these things.

[Lion EA]

Basis = actual amount paid + W-2 amount of compensation taxed for shares + any transactions fees. So, usually a small loss = transactions fees.