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« What's New For The 2014 Tax Season: A Quick Take | Main | Does Your W-2 Include Stock Comp Income And Withholding? Time For Our FAQs And Diagrams »

05 February 2014


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Thank you very much for your information. I'd like to have a question if you don't mind:

I was granted, and exercised some ISOs in 2004 before leaving my old company, and I paid $0.2 for each share. The company went public a few years ago, and in 2013 I sold all the stock options for a gain.

Since I've never received a 3921 form (probably because it didn't exist in 2004), Turbo Tax asked for some info that I could fill out because I still have the original documents. However, I don't know what to use for the FMV of the stock share in Box 4, because in 2004 the company was still private. In this case, should I use "N/A" or "0", or something else for the FMV in Box 4?

Thank you very much for your time and advice.



My answer is that for ISOs that are held two years from the grant date and one year from exercise, the tax basis is your exercise price. If there was any AMT, then this is dual basis stock and there will be a separate basis and adjustment for the ISO stock at sale on the AMT form, too. For details, see the sections ISOs: Taxes and ISOs: AMT Advanced on myStockOptions.com.

Thank you so much for your help, Bruce.



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