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 Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14881
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

I sold company stock througs Morgan Stanley which was reported

Customer Question

I sold company stock througs Morgan Stanley which was reported to the IRS on my W2 form and all taxes were withheld. Do I need to file form 8949 and Schedule D with my taxes?
Submitted: 3 years ago.
Category: Tax
Expert:  Robin D. replied 3 years ago.

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.

Robin D. :

It appears you completed a stock sale that was a cashless exchange

Robin D. :

You will still need to report the sale but most of these end up with a small loss due to expense of the sale

JACUSTOMER-0opkvov6- :

I don't understand cashless or non cashless....I sold NQ shares and received cash proceeds which were reported on my W2 form.

Robin D. :

Yes, it is referred to as a cashless exchange because you were not required to buy the stock first. The stock was purchased for you and then sold. Tell me if you had to actually purchase the shares first.

JACUSTOMER-0opkvov6- :

I also exercised PSS shares and paid the taxes and did not sell the stock.

Robin D. :

I will need to check on the PSS one sec please

Robin D. :

Due to acronym discrepancies please tell me what you mean by PSS

Robin D. :

To give more clarification on the stock options sold. If you receive compensation from employer-provided nonstatutory stock options, it is reported in box 1 of Form W-2. It also is reported in box 12 using code “V.
Report the sale as explained in the Instructions for Schedule D (Form 1040), Capital Gains and Losses, for the year of the sale. You may receive a Form 1099-B, Proceeds from Broker and Barter Sale Transactions, reporting the sales proceeds.

Your basis in the property you acquire under the option is the amount you pay for it plus any amount you included in income upon grant or exercise of the option. Your holding period begins as of the date you acquired the option, if it had a readily determinable value, or as of the date you exercised or transferred the option, if it had no readily determinable value.

Robin D. :

If you do not report the sale the IRS will send you a statement and as they will not know the specifics of the sale they will simply add the total sale price to your other income. Of course you will be allowed to at that time correctly show the sale but it can be an avoidable process by reporting the sale when required. The taxes ahve been paid yes, but the reporting is not eliminated because of that.

Robin D. :

The system advises you have left so I will wait for you to return.

Robin D. :

Customer Last Viewed Today at 1:14