MsTabbyKats Posted February 24, 2015 Report Share Posted February 24, 2015 I'm having a senor moment here W-2...code V....options included in Box 1 Should there be a corresponding 1099-B showing this amount? (So the Schedule D ends up a wash) Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 24, 2015 Report Share Posted February 24, 2015 (edited) Yes. Unless they didn't sell the stock, but I've only seen one time where the client bought & held. Edited February 24, 2015 by joanmcq 1 Quote Link to comment Share on other sites More sharing options...
GraceNY Posted February 24, 2015 Report Share Posted February 24, 2015 The person may have exercised their options and paid for them. Therefore, if they didn't sell them there will be no 1099B. This W-2 should be kept with their option and purchase paperwork. It could be needed to establish basis if they sell them later. On the other hand, if it was a "cashless" exercise, then some shares were sold to cover the Fed, SS, Med., and if applicable, state taxes. It is likely they received a 1099B for this transaction. I have client give me "everything" they have with respect to the options in order to see what actually took place. Hope this helps. Grace 2 Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted February 24, 2015 Report Share Posted February 24, 2015 Sometimes this animal will get to the 6251. Otherwise what Grace said is mostly what I see. One or the other. See if you have all the paperwork. I have sometimes found the info on a pay stub occurring about the same time the exercise took place. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 24, 2015 Report Share Posted February 24, 2015 Yes, there can be timing issues with some types of options that lead to "phantom income" on the 6251 with a corresponding offset another year. 1 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted February 24, 2015 Report Share Posted February 24, 2015 Also, with the 1099-B not having to be sent out to taxpayers until Feb 15th, 28th or even March 15th, you may have many times that the W-2 is in hand for A LONG time before we get the 1099-B with the stock sale. Do not let the taxpayers desire to FILE NOW force your own hand. Wait for the documents. And I have seen W-2's with known options sales, and no code V... So that 1099-B is coming, and its a time bomb. (Here is looking at you Google...) Rich 1 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted February 24, 2015 Author Report Share Posted February 24, 2015 Also, with the 1099-B not having to be sent out to taxpayers until Feb 15th, 28th or even March 15th, you may have many times that the W-2 is in hand for A LONG time before we get the 1099-B with the stock sale. Do not let the taxpayers desire to FILE NOW force your own hand. Wait for the documents. And I have seen W-2's with known options sales, and no code V... So that 1099-B is coming, and its a time bomb. (Here is looking at you Google...) Rich And this is exactly why I have a large pile "on hold"....(have 2 Google people on that pile) I was thinking of just "plugging" a 1099-B with the V amount....to cover all bases. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 24, 2015 Report Share Posted February 24, 2015 And this is exactly why I have a large pile "on hold"....(have 2 Google people on that pile) I was thinking of just "plugging" a 1099-B with the V amount....to cover all bases. Include the redemption fees by the broker to show a small loss. This is legitimate. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 24, 2015 Report Share Posted February 24, 2015 Oh, gosh, I let one slip past me. RSUs she exercised and held. Now that you post about it, I realize she had no 1099-B but sure enough, enough shares were sold to cover her w/h taxes. Well, I'll tell her to contact me as soon as she gets her refund AND her 1099-B (I think it might be Merrill Lynch) and I'll amend for free. How did I let that slip past? I know the 1099-Bs straggle in later and later each year. She filed later last year. And, she had a lot of paper re all the dividends she received. I was rushing, or tired, or both, and thought I had paper on everything, investments, HSA, highly compensated changes in her 401(k) limits, etc.. I goofed on her return once years ago, different issue, so hope she's forgotten that. She brought me lunch the last couple of years, so I want to take good care of her! 4 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted February 24, 2015 Author Report Share Posted February 24, 2015 Good thing I posted about my memory loss 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 25, 2015 Report Share Posted February 25, 2015 Yes, thank you, Tabby. At least I can tell her now before she gets an IRS letter. Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 25, 2015 Report Share Posted February 25, 2015 Lion, we all do the same thing. Hopefully with clients in rotation, rather than the same one year after year! 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.