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 Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

Need help understanding the new 1099B regulations.

This answer was rated:

I have a person Form W-2 box 12 with code v $123,388.70 and box 12 code Y 29426.67
the code v is for Non-statutory stock options and is included in his box 1 and 3.

In addition, he gave me Form 1099-B first sections says information is being reported to IRS,  box 1a, 1b, 6, 2, 3, 4, 5, 8 and 15 are all blank.

Then next section of 1099-B says this information is not being reported to IRS: report on Form 8949 with box B checked in either part 1 or Part 11 as appropriate; 
box 9 description- federal, BOX 1A 05/18/11, box 1B blank, BOX 6 NONCOVERED , QTY 6667, BOX 2 574262.52, box3 0, box4 0, box5 0, box 8 blank box 15 blank.

He insists I need do nothing with this form 1099B since all was included on his W-2. 
I am at a loss, the $57,4262.52 was the total sold and each employee got their part and it went on form W-2. Why didn’t Form 1099b show just his portion? I have no idea what to do with this on Form 8949 or Sch D.

I find these 1099b new regulations more confusing, please help.

Hi and welcome to JustAnswer!

When you exercised stock options - there are two transactions - purchase and sale - and there are several reportings.
The amount reported on the W2 form box 12 with the code "V"-Income from exercise of non-statutory stock option(s) - is already included in box 1 as taxable wages. That amount is your basis in determination of capital gain or loss.
The sale transaction is reported on form 8949 and transferred to schedule D part I because you did not hold shared more than a year.

On form 8849 - you will report purchase and sale on the same day.

The sale price you need to take from 1099B

The basis is coming from W2 form box 12 with the code "V"

Let me know if you need any clarification.

Customer: replied 4 years ago.

Okay, I am reading this year-end tax statement on the next page after the 1099-b is
schedule of realized gains & losses (Information not reported to IRS is used as basis for reporting on 1099-b)

Date of sale 05/19/11, date of acquisition 05/18/11, disposition transaction DWR,6667,
gross proceeds $574,262.52, cost of other basis $574,262.52 realized gain/loss $574,262.52, disposition meth FI

So does this change anything on how I should report this?
Not sure what to put on 8849.

Thank you for your time.

Ok - so you have purchase and sale dates.
your have gross proceeds $574262.52 - from 1099B
If the cost or other basis is reported on 1099B - you need to use it.
Your gain would be = (selling price) - (basis)
But - you need to report the sale transaction.
Customer: replied 4 years ago.

The entries on 8949 I get I am to report the sale/purchase dates
selling price $574,262.52
cost basis $574,262
which shows basically $0 realized gain/loss

This is what is confusing: his 1099-b schedule of realized gains & losses (Information not reported to IRS is used as basis for reporting on 1099-b) it reports "realized gain/loss $574262.52, disposition meth FI". this seems contradictory.

Also, what is disposition transaction "DRW"?

Taxpayer says the $574,262 is the total sold that day among all employees. Why doesn’t 1099B just reflect his portion and match code V on the W-2?

First of all - I am not clear where did you get the basis? Is it reported on 1099B? - if yes - you are correct the gain is zero.

DWR normally stands for drawing - but the actual meaning should be conformed with the sender.

Whatever is reported on taxpayer's 1099B form - is the amount sold on HIS account - and that amount is not related to other employees.
If 1099B form doesn't report the basis - you need to use the amount on W2 with code "V" which reports the amount included in employee's taxable wage.

Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience: Taxes, Immigration, Labor Relations
Lev and 4 other Tax Specialists are ready to help you

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... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...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
< Previous | 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.

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
< Last | Next >
  • Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
  • Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • Richard's Avatar


    Tax Attorney

    Satisfied Customers:

    29 years of experience as a tax, real estate, and business attorney.
  • Robin D.'s Avatar

    Robin D.

    Senior Tax Advisor 4

    Satisfied Customers:

    15years with H & R Block. Divisional leader, Instructor
  • Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
  • jgordosea's Avatar


    Enrolled Agent

    Satisfied Customers:

    I've prepared all types of taxes since 1987.
  • R. Klein, EA's Avatar

    R. Klein, EA

    Enrolled Agent

    Satisfied Customers:

    Over 20 Years experience

Related Tax Questions