RSU AND ISO AND ESPP

[gamacpa]

How to report amounts in Lacerte. Amounts are shown as ordinary income  on etrade worksheet NOT sent to IRS.

[jerry]

The E-trade Stock Plan transaction supplemental report does not list them as ordinary income.  They are classified (column on far right) as to the type of gain to report.

The W-2 income reported on this Supplemental document shows the adjustment you need to make to the basis reported on the actual 1099 form from E-trade.  Study the Supplemental document for a  bit, and you'll get it.  It is very useful.

[jerry]

I hit Post too soon....

For covered trades (A and D), the basis must be reported as stated on the 1099.  However, you add to basis the amount of income shown on the E-trade supplemental report, and you do this by "correcting" the basis.  Look in the Section Schedule D on the Dispositions screen; but it should show up with a Code B on the 8949.  The net gain/loss on the 8949 should match the E-trade gain/loss.  

For uncovered trades (B and E), E-trade generally reports with basis zero.  For these, report the basis on the Disposition as shown on the supplemental report.  There is no Code B involved for Uncovered trades.

[gamacpa]

thank you