On Feb 18, 1:28=EF=BF=BDam, "Yuri Weinstein \(HotMail\)"
<yuriw_NOS...[at]hotmail.com> wrote:

- quote -

expense if > > you exercise and sell the same day. If you buy
the stock > > with your own money and hold it for sale later,
there can be > > a change in value. Most employees need to
use the proceeds > > of the sale to pay for the purchase.

- quote -

Schedule D (cost basis). That is why you will likely show a
small capital loss for the same day exercise and sale.

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- quote -

Thank you for the help!
I did not get 1099-B form. How (what form) can I deduct my
transaction commissions?

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"Phil Marti" <prm20...[at]verizon.net> wrote:

- quote -

Phil is right. I just did one of these for a client and
examined the company paperwork in detail. The sales price
was $40,000, the exercise price was $23,859 and the
difference (the bargain element) was $16,141. The $16,141
was in his W-2. Since the money was already taxed as wages,
the full amount he paid for the stock was $40,000 with a
selling expense of $58.

$40,000 - $40,000 =3D 0 gain or loss, and the selling
expense is a loss.

If you do this again, keep in mind that you will most likely
not have any gain or loss except for the selling expense if
you exercise and sell the same day. If you buy the stock
with your own money and hold it for sale later, there can be
a change in value. Most employees need to use the proceeds
of the sale to pay for the purchase.

Linda Dorfmont E.A., CFP, CSA

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"Yuri Weinstein" <yuri.weinstein[at]gmail.com> writes:

- quote -

Only to the extent of $3000 of capital losses.

In other words, if you have up to $3000 in net capital
losses for the year, you can take the whole loss. If you
have more, you can only take $3000 and must carry the rest
to next year. For example, if you have a $20000 loss, you
take $3000 of it this year and carry the $17000 over to next
year.

- quote -

Look at Line 13 of Form 1040 as well as the entries on
Schedule D. And look for the "Capital Loss Carryover
Worksheet" as well.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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yuri.weinstein[at]gmail.com (Yuri) posted:

- quote -

Both items should have been entered on Schedule D. You
should find such a Schedule has been created as a part of
your tax file, if you entered the data. Then, just verify
that the amounts shown are correct and match your records.

And Yes, your capital losses should offset capital gains, to
the extent of the total loss.

Bill

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"Yuri Weinstein" <yuri.weinstein[at]gmail.com> wrote:

- quote -

No. The gain from the options was wage income, which is why
it wound up on your W-2. When you report it on Schedule D
you include the amount treated as wages in your basis. A
same-day exercise/sale usually results in a short-term
capital loss equal to the fees. A great source for
information on options is www.fairmark.com.

I don't know if you would have made the same decision had
you understood the rules, but for lurkers, the time to
validate assumptions is before you act, not after.

- quote -

Check to see if Schedule D looks like I said it would. If
it doesn't, something's wrong.

--
Phil Marti
Clarksburg, MD

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I've exercised and sold my company options last year.

The proceeds were ~10,000 and after all taxes were
withdrawn. This was reported on my W-2 form in box 12c with
letter "V".

On another hand, I have investment capital losses that
should off-set my gains from the options sell.

My assumption was that I could write-off my losses against
my options gains. Is it correct assumption?

I used TurboTax, but not sure if this was taken into
account. How do I make sure of that?

Any help is greatly appreciated.

Thx
YuriW

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