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March 27, 2022
Question

3921 ISO Price is higher than broker report's real sales price, but Turbo tax count as Zero gain

  • March 27, 2022
  • 1 reply
  • 0 views

Since my W2 included the ISO sales, if it counts this case as Zero, that means I will pay more tax.

Can anyone tell me how to deal with this issue in turbotax? Thanks

1 reply

March 29, 2022

It appears as if your 1099-B (your broker report) is showing the ISO that you exercised with a $0 basis.  And yes, if you leave the basis at zero, you will likely pay more in tax than is required.  Thus, you need to make an adjustment to your basis.  Do you know your exercise price or the price at which you exercised the ISO and further, what you paid to purchase the underlying stock.  If you know what you paid to purchase the underlying stock, then that amount is your basis.  If you paid a commission/fees in connection with your purchase, add those amounts to your cost basis.  

 

If you have only one transaction to enter, perhaps the best option would be to enter the transaction manually rather than trying to upload it.  If you are using TurboTax on-line, go to the Income & Expense section, then scroll down the page to Investment Income, and click on the drop-down arrow to reveal all the options.  Select Stocks, Cryptocurrency, Mutual Funds...

 

You may have already seen the page "Let's import your tax info."  At the bottom of that page is the "I'll type it myself" button.  Click on that button and enter your information.

 

In TurboTax desktop you will go to Wages & Income under Federal Taxes.  At the page "How do you want to enter your income?" select "I'll choose what to work on."  Scroll down to Investment Income, and select Stocks, Mutual Funds, Bonds.  Answer the questions accordingly, but when you get to the page where you have the option to upload your documents, select the option to "Ill type it in myself."  Then enter your information. 

 

@Philo0901

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