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My W2, Box 12b shows V $3,887.28. This is my NET proceeds from a company stock transaction and income and taxes were included in the other W2 boxes. I also received a 1099-B from the Broker showing Gross Proceeds of $14,512 - but no cost basis, fed taxes withheld, etc. questions - 1) Isn't the 1099-B wrong? 2) Do I need to fill out a schedule D for this?
The 1099-B will not include your cost basis. Yes, you will have to report this as a gain on a Schedule D. Your gain will be the difference between the sales proceeds you received and your cost basis for the stock which will be the amount (exercise price) you paid for the stock plus the $3,887.28.
The $3,887.28 is included in your cost basis so there will be less gain reported on the Schedule D.
I filled out Schedule D - shows a net capital gain of $3,887. That moves over to form 1040, line 13 capital gain. However, my $3887 has already been included on 1040 line 7 in my wages, so in essence, why am I being double-taxed on this gain?
Your total cost basis is $14,652 ($9,840 + 3,150 + 925 + 737). So you have a loss. The amounts you paid for the stock (9,840 + 925) are added to the appreciation (3,150 + 737) because the appreciation was already included in your taxable income on the W-2.
See page 13 for description of item V on W-2.
See page 11 of Publication 525 regarding basis on sale of stock -
Thank you, ***** ***** answers my question.