anyone know anything about Incentive Stock Options?

[AmigaMan]

Ok, so I got some stock options earlier last year and sold them (cashless exercise) around November for a small profit. The cost of the stock was around $20,000 and I sold it for around $25,000 making a little over $5,000. On my 1099-B it just shows quantity sold, date of sale, and the cost of the stock. When I enter it into TurboTax, it asks for a cost basis which I have no idea how to figure. On my W-2, in box 14 I have ISO-Same $5,000. Is this my cost basis?

Anyone have any idea how this is supposed to work? If I enter 0 in as the cost basis, I end up owing over $7,000 to the gubment which I really don't think is right.

 

[FlyLice]

Uhhh, cost basis = $20k

You didn't pay taxes on the options you received last year? Uh oh better find out if it was qualified or non-qualified stock options!

 

[ingenuiti]

Were these stock options or from a stock purchasing plan?

 

[Squisher]

My wife exercised some of her stock options last year.

I haven't got a 1099-B yet, but the transaction appeared on her paycheck as income and was taxed at the time of the sale.

 

[AmigaMan]

Originally posted by: FlyLice
Uhhh, cost basis = $20k

You didn't pay taxes on the options you received last year? Uh oh better find out if it was qualified or non-qualified stock options!

I wasn't sure (am still not quite clear) what a cost basis is. I believe they were qualified but then again, I'm not too sure about that either. They were stock options awarded to me by my company. I guess I kissed enough ass or something...

 

[Yossarian]

cost basis is just the amount actually paid for the stock. your options are exercised in theory by your buying the shares for $20k, then immediately selling for $25.

google a little bit and you'll find lots of info.

 

[AmigaMan]

Ok, when i entered that into TurboTax I now only owe $2,000 instead of over $7,000. Whew! Now to put in my mortgage interest and charitable donations in and see if I break even this year...