1099-NEC cost basis for non qualified stock sale?

Forum|Forum|3 years ago
September 28, 2022
2 replies
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Tax experts need your assistance please!

I had to sell back non qualified stock options to my previous employer when i left the company for $1100. They sent me a form 1099-NEC with that same amount. I originally purchased the options for $1000. I figure my cost basis to be at $1000 but cannot find where I can enter this information.

Any advice would be greatly appreciated!

Best answer by Laura_CPA

Hi taxnovice71,

Checkout #3 for your particular situation in this article https://www.forbes.com/sites/brucebrumberg/2020/03/09/its-complicated-five-big-mistakes-to-avoid-with-stock-options-on-your-tax-return/?sh=14fb0b0d7e3d

If you did not receive a 1099-B from the brokerage institution, what you can do to verify is create an IRS online account at IRS Account and pull a Wage and Income Transcript (it is instantaneously done), you'll find all of your income in that transcript. Keep us informed.

Cheers,

Laura

Laura_CPA

Hi taxnovice71,

Happy to assist you with your question! The cost/basis information for the sale of stock it is usually entered in the following: https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/where-do-i-enter-a-stock-sale/00/591518

You mentioned a 1099-NEC was issued to you, did you receive a 1099-B?

Cheers,

Laura

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taxnovice71Author

Thank you for the follow up, this is where i am struggling, i did not receive a form 1099-B. My inclination was to to skip the 1099-NEC and just fill out the information i have for the 1099-NEC as a 1099-B, if the IRS flags that would give me the opportunity to explain that to them. I'm not sure if that is the prudent way to go though..?

Esther M

Hi Taxnovice71,

In this case you can skip the 1009-NEC but keep it for your records in case the IRS requests a copy. Just follow the above steps and enter the information on Form 1099-NEC .

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