In article <6Mril.16881$c45.2816[at]nlpi065.nbdc.sbc.com> ,
Mark Bole <makbo[at]pacbell.net> wrote:

- quote -

If I had more investments or stock transactions than this one, I might
have. Having just this one, the Deluxe version of Turbotax is just fine
for my needs, thanks to the help from the kind folks here.

With their helpful information, I was able to use the Schedule D form
directly to enter the information. Turbo tax actually did make it easy
to the use form, because once you enter the type of Stock transaction,
it highlights the fields in which you need to enter information.

Bonnie

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Phil Marti wrote:

- quote -

If you have bought the premium version or higher of this software, I
believe the interview will handle it just fine. Probably true of other
DIY software as well -- to some extent, you get what you pay for.

-Mark Bole

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joeu2004 <joeu2004[at]hotmail.com> wrote:

- quote -

Thanks. It could easily have changed in the last few
years, without me noticing.

Steve

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On Feb 3, 7:15*pm, spop...[at]speedymail.org (Steve Pope) wrote:
- quote -

For exercise-and-sell transactions that occur on the same
day, companies are permitted to use the sales price as the
FMV (basis). That might be a "recent" change (i.e., some
time in the last decade!). I remember that it used to be as
you describe.

(But in the past, the W2 figure was the FMV as determined
by the company. That is not always the closing price.
Some companies use the daily average. There might be
other accepted practices.)

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Phil Marti <prm20871[at]verizon.net> wrote:

- quote -

Actually it will be a different, small amount. This is because
the W2 figure is based on the closing stock price on the day
of the transaction, whereas the sales price on the 1099 is
based on whatever price the trade was actually made at, intraday.

Steve

--
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Bonnie Forman <bons77[at]pacbell.net> wrote:

- quote -

No, it won't be counted twice.

- quote -

You will also receive a 1099. (They are not due until Feb 15
of this year so you may not have seen it yet.)

On Schedule D, you need to enter the "cost or other basis"
and the "sales price". The "cost or other basis" will be the sum
of the the option price that you paid when you exercised and the
income reported on the W2. The "sales price" will be the amount you
received from the sale, reported on the 1099, and this amount
should be net of Merrill's commissions and fees. The resulting
gain will be close to, but not exactly zero.

The W2 income is also reported on 1040 in the usual way for
wage income.

Steve

--
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"Bonnie Forman" wrote:

- quote -

Yes you do, and no, it won't. The amount deemed to be wages (the box 12 "V"
amount) adds to your basis. On Schedule D you'll wind up with a short-term
loss equal to the fees.

Don't try to do this through the interview. Use Forms mode to directly
enter the stock sale to a 1099-B input screen.
--
Phil Marti
Clarksburg, MD

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Hello -

In 2008 I exercised some of my company stock options I was given in
2002. It was a Cashless transaction. My companies stock options are
handled through Merril Lynch.

Shortly after the transaction I received some paperwork showing the
details of the transaction, including taxes and fees that were withheld.

This income and tax withholding is included on the W2 form I received
from my company. (There is a V in box 12c, and I've done the math to
confirm it was included.)

I am using Turbotax to do my taxes.

Since the income was already added and taxes were withheld, do I still
have to enter it in Turbotax (which I believe will include a Schedule
D)? Won't it then add it to my income again?

Also, can I deduct the Merrill Lynch fees and commissions?

TIA

Bonnie

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >