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July 26, 2019
Question

1099B I sold stock in 2018 that I received from from employer in 2007 as part of my compensation package. They were stock options that turned to real stock after a time period went by. The amount was 8000 I do I report this income.

  • July 26, 2019
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    Employee
    July 26, 2019

    Is it taxable income -- yes .  BUT:

    (1) if the stock warrant  or actual stocks was give as part of the compensation ( with you not having to pay anything  ) then  the employer would have had to account for the dilution , by ascribing a value ( FMV or nominal /face value  )  and declaring this as wages  on your W-2.  This would be your basis

    (2) If the stock was in the form option at a fixed price, vesting over a period, then the price at which you exercised the option is your basis

     

    Any gain in the value ( sales price less expenses such as commission ) over the basis is Capital Gain .  TurboTax would take care of computing the gain and filling out the forms  once you tell it  the basis, the date acquired ( exercised  and/or vested ), the date sold and the sales proceeds.

    Is this what you meant ?