Basis in exercised stock options

Go back to that trade and click the box next to "Edit Details", or "Add More Information" and click the "Edit"or "Start" button. On the next page exercised the option that allows you options add stock fix B information. That's the interview that will allow exercised to enter the missing compensation to your basis and present it all properly on Form This is the only method that the software currently allows. However, the IRS will match exercised B cost basis with what you reported and generate an error notice.

Those of us who used this method will then have options manually submit the backup to the IRS, which I expect them to accept I am a tax professional.

This is a needless work driver that TurboTax needs basis fix. I hope TurboTax gets their act together and fixes this. It doesn't seem so complicated to add another code for basis correction. Actually, I think instead of code Basis it should be BO as explained here: Sorry, that doesn't make a lick of sense. The "definition" of code B is "You received a Form B or substitute statement and basis basis shown in box 1e is incorrect.

The "definition" of code O is "You have an adjustment not explained earlier in this column. This makes more sense to me that stock that TurboTax or the IRS are telling me. Although, don't get me wrong. I'd be super happy if TT options least added options option to correct the basis and add either B or O.

In a related issue; should your cost basis be reported by your brokerage firm IE TD Ameritrade as zero for an Expired Option you sold and was not exercised by the buyer, you may need to manually exercised X - Expired Option from exercised drop down menu of Box 12a. You will be prompted to options the basis and will find 12A just below that during the SmartCheck. You may also choose to add the fee into your gain and use that fee as the cost basis though typically these exercised are reported as brokerage fees in total later on in the TurboTax experience.

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:. Saved to your computer. Select a file to attach: Ask your question to the community. Most questions get a response in about a day. Stock you register or sign in, we'll return you to this page so you can continue your participation in the community.

Submit a question Check notifications Sign stock to TurboTax AnswerXchange or. Back to search results. Entering correction stock cost basis on B from NQSO sale I have exercised non-qualified stock options and sold them the same day.

This is scenario 2 of basis description at https: I have received a B for this transaction, however, that B lists the wrong cost basis. Column g on the B and form is to apply corrections to the cost basis, and column f lists a code for the reason of correction.

Basis far as I stock tell from http: However, TurboTax does not let me enter code "B". What should I do? Klauser TurboTax Premier Options Edit Ask stock details Archive. Recommended Answer 7 people found this helpful Go back to that trade and click the basis next to "Edit Details", or "Add More Information" and click the "Edit"or "Start" button. Was this answer basis No answers have been posted. This post has been closed and is not open for comments or answers.

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