OUR BLOG

  • From the team at myStockOptions.com and myNQDC.com, this blog has commentaries on equity compensation and NQ deferred comp, tips on the related tax and financial planning, updates about new stuff at our websites, and sometimes the lighter side of the topics we cover. We do our best to keep the writing lively.


    Copyright © 2010–2017 myStockPlan.com, Inc.


« 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

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Hi,

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.

Regards,

Tom

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.

Regards,

Tom

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)