How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Bill Your Own Question

Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3078
Experience:  EA, CEBS - 34 years experience providing financial advice
6480514
Type Your Tax Question Here...
Bill is online now
A new question is answered every 9 seconds

My W2, Box 12b shows V $3887.28. This is my NET proceeds ...

Customer Question

My W2, Box 12b shows V $3887.28. 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... ?''s - 1) Isn''t the 1099-B wrong? 2) Do I need to fill out a schedule D for this?
Submitted: 6 years ago.
Category: Tax
Expert:  Bill replied 6 years ago.
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.
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3078
Experience: EA, CEBS - 34 years experience providing financial advice
Bill and 5 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
Reply to Bill's Post: On the schedule D, how will I not duplicate the $3887.28 that is already reported in my income?
Expert:  Bill replied 6 years ago.
The $3,887.28 is included in your cost basis so there will be less gain reported on the Schedule D.
Customer: replied 6 years ago.
Reply to Bill's Post: If you can get me to my answer, I'm going to gladly pay - so hang with me for a bit.

I filled out Sched D - shows a net capital gain of $3887. 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?
Expert:  Bill replied 6 years ago.
Can you give me some specific figures, such as the total amount you paid for the stock, the number of shares, the exercise price), the value of the stock on the date you purchased it, and how many shares were involved?
Customer: replied 6 years ago.
Sure - two transactions. Both options held over 1 year.

1) Sales Price: $12,990, cost $9840, gain $3150.
2) 1,662, 925, gain 737.

Why do you need # XXXXX shares, exercise price, etc..?
Expert:  Bill replied 6 years ago.

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.

Expert:  Bill replied 6 years ago.

See page 11 of Publication 525 regarding basis on sale of stock -

http://www.irs.gov/pub/irs-pdf/p525.pdf

 

Customer: replied 6 years ago.
Reply to Bill's Post: I must be missing something.

So if you look at Sched D, Part II long term capital gains - I have column d (sales price) = 14,652. column e (cost or other basis) = 10,765 and column f (gain or loss) = 3887.

You are saying my cost or other basis should be equal to 14,652? I do not get this logic.
Expert:  Bill replied 6 years ago.
Your cost basis is $14,652 not $3,887. Your basis is the amount you invested plus any amount that was included in your income upon exercise. The $3,887 was included in your income on the W-2 as a result of your exercising your option. The second paragraph under Sale of Stock in Pub. 525 discusses the basis.
Customer: replied 6 years ago.
Bill - Why didn't you just say this to begin with? ;-)   That completely answers my question.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
Bill
Bill
Tax Professional
3078 Satisfied Customers
EA, CEBS - 34 years experience providing financial advice