Form 8949: reconcile W2 and 1099B for the cost basis

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Topic Author
linenoise
Posts: 23
Joined: Sat Mar 17, 2018 2:27 pm
Location: U.S.A

Form 8949: reconcile W2 and 1099B for the cost basis

Post by linenoise »

Hello,

I am going through my 2023 taxes, and got turbo taxed to an amount I did not anticipate.

The main driver appears to be an exercise + same day sale of some NSOs. I have the following documents:

- My W2 has box 12a with code V for an amount that corresponds to the proceeds of the sale minus my cost to exercise (i.e. my actual gains);
- My 1099B has the proceeds (box 1d), and the exercise cost (box 1e).

When I enter my 1099B in TurboTax, am I doing the right thing by adjusting the cost basis to W2 box 12a + my exercise cost?

This way the short sale basically appears as no gains (and a couple $ of losses probably going back to some transaction fees) on form 8949.

My understanding is that gains are being handled from the W2, and should not be accounted again from the 1099B, to calculate the taxes I owe.
Topic Author
linenoise
Posts: 23
Joined: Sat Mar 17, 2018 2:27 pm
Location: U.S.A

Re: Form 8949: reconcile W2 and 1099B for the cost basis

Post by linenoise »

Following-up on that after additional research & counsel.

I am correct, in my case, where my W2 12a with code V amount entirely corresponds to that sale, that translates into column (g) of form 8949 part I having the opposite value of the amount in W2 12a with code V.

As a slightly related woe: I had another 1099B (for long-term sales) with the exercise cost in box 1e, (that is the cost basis was not adjusted to number of shares * FMV at time of exercise), and in form 8949 part 1 column (e) it is correct to put the adjusted cost basis (instead of the value from the 1099B), then have code B in column (f), and 0 in column (g).

What a drag.
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