@qbteachmt Thanks for your comments!

According to TP, he did not pay for anything to receive the proceeds as stated on 2021 form 1099-B. The proceeds were not on 2021 W-2 as this is an overseas job/foreign employer. But TP said this is NSOs as he got the option agreement. Therefore, the full amount of proceeds to be reported in 2021 return as part of wages and Sch D and f8949 with gross proceeds and cost figures are the same. It seems that the date of exercise and date of sale occurred on the same day in 2021.

TP also said that this 2021 proceeds were not in 2017 wages/income. It is strange because TP did not have enough fact/paper trail.

Your thoughts on this?