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Posted by Yuri Weinstein \(HotMail\) on February 18, 2007, 4:28 am
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> Phil is right. I just did one of these for a client and
> examined the company paperwork in detail. The sales price
> was $40,000, the exercise price was $23,859 and the
> difference (the bargain element) was $16,141. The $16,141
> was in his W-2. Since the money was already taxed as wages,
> the full amount he paid for the stock was $40,000 with a
> selling expense of $58.
>
> $40,000 - $40,000 = 0 gain or loss, and the selling
> expense is a loss.
>
> If you do this again, keep in mind that you will most likely
> not have any gain or loss except for the selling expense if
> you exercise and sell the same day. If you buy the stock
> with your own money and hold it for sale later, there can be
> a change in value. Most employees need to use the proceeds
> of the sale to pay for the purchase.
Thank you for the help!
I did not get 1099-B form. How (what form) can I deduct my
transaction commissions?
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