1099B Granted stock

[Eli]

Client recieved stock thru his job. He says they were Granted to him. He states there were a total of 100 shares of Barnes & Noble stock. He says the company sold 43 of the shares to cover his taxes. The 1099B shows a sale of 57 shares for a total of $2281.00. The 1099B shows date of sale, name of stock, per share price & total sale, but does not show cost basis. Being that this was a grant, would he need to pay taxes on the full amount (2281) or do we need to contact the company to get cost basis?

Thank you!!

Eli

P.S. there is nothing listed in Box 12 on his W2

[Julie]

1099B is not supposed to show the cost basis. His employer gave him a lot more information at the time. You need it. If he did not pay for the stock, or got a discount on the stock, the value of the "gift" should have been added to his W2, and that amount would be his basis, whether or not it's separately reported on the W2. It may be buried in a pay stub or somewhere else. I expect he will come up with the paperwork, or B&N can give you some help. If all else fails, the value (from finance.yahoo.com or another site with similar information) of that stock on the day of the grant will do.

Client recieved stock thru his job. He says they were Granted to him. He states there were a total of 100 shares of Barnes & Noble stock. He says the company sold 43 of the shares to cover his taxes. The 1099B shows a sale of 57 shares for a total of $2281.00. The 1099B shows date of sale, name of stock, per share price & total sale, but does not show cost basis. Being that this was a grant, would he need to pay taxes on the full amount (2281) or do we need to contact the company to get cost basis?

Thank you!!

Eli

P.S. there is nothing listed in Box 12 on his W2

[Eli]

1099B is not supposed to show the cost basis. His employer gave him a lot more information at the time. You need it. If he did not pay for the stock, or got a discount on the stock, the value of the "gift" should have been added to his W2, and that amount would be his basis, whether or not it's separately reported on the W2. It may be buried in a pay stub or somewhere else. I expect he will come up with the paperwork, or B&N can give you some help. If all else fails, the value (from finance.yahoo.com or another site with similar information) of that stock on the day of the grant will do.

Thanks for your help, Julie. Of course he doesn't have the check stub, so we'll have to do a little research.

Thanks again!!

Eli

[joanmcq]

He should have gotten a statement from his employer with all of the relevant info on it, including what the option price if any, was (it was probably a restricted stock grant with price of 0 from what you are telling us). I have a client that had stock last year from Barnes & Noble, and they do get the info.

[Eli]

(it was probably a restricted stock grant with price of 0 from what you are telling us).

That's exactly what it was. Does this mean that in his case, the amount sold would be his captal gain? There's also an asterisk in box 12. Down at the bottom it says if there is an asterisk then you cannot show a loss on F-1040 pertaining to this transaction.

Thanks, Joan!!

Eli

[JRS]

Sleeping on your problem, since there is a check mark in Box 12 of the 1099B, one would have to assume this was an award rather than a stock option. Options have basis, even if it zero. In this case, with the check mark the basis is definitely zero and shows me that it was an award. The sale of the 43 shares, though, still bugs me and I can't find an answer.