ISO Disqualifying Disposition Form 3921 v Form 1099-B

[The Real Halloween]

TP exercised and sold ISO shares on the same date. The total FMV of share on the date of the option was exercised (Box 4 of Form 3921) was $24,847 but the cost basis was $24,748 (Box 1e Form 1099-B).

The bargain element (FMV – Exercise price) already included in Box 1 Form W-2.

There was a difference of $99. In reporting into Form 8949 Part 1 Box A, which figure should be used: $24,847 Form 3921 or $24,748 Form 1099-B as both are reported to the IRS?

Thanks for your time and comment.

[George4Tacks · Accepted solution]

Use the 1099B reporting. The difference is likely either a fee for the transaction or a share price difference for the timing difference between exercise and sell. e.g. exercise at 9:00 and sell at 9:02 could experience a change in price per share.

[The Real Halloween]

@George4Tacks Thanks for your time.

TP provided us with more information as follows:

The company’s year-end letter to employees, Form 3921 and the Stock Plan Transactions Supplement, which was issued after Form 1099-B and was not reported to the IRS, all had the same figure $24,847.

Does that mean Form 1099-B has been superseded?

[George4Tacks]

The 1099-B is NOT superseded. You may need to make an adjustment that will show up as a code B 

Here is a Lacerte Article https://proconnect.intuit.com/community/help-articles/help/generating-form-8949-column-f-for-various...

Maybe @IntuitBettyJo could look into adding one for PTO and cleaning up the messy presentation of the Related Topics in https://proconnect.intuit.com/community/help-articles/help/entering-stock-transactions-for-form-8949... alloftherelatedtopicheadingsaresmushedtogethersoitisveryhardtoseethechoices.

[IntuitBettyJo]

Hi George4Tacks, 

Thanks for bringing this to our attention, I have passed on the feedback to our content team and will update you accordingly. 

Cheers! 

Betty Jo 

[The Real Halloween]

Thanks @George4Tacks for your time and comment. Cheers.

[IntuitBettyJo]

Thanks for your patience, here's an article for PTO that you requested. Generating form 8949 Column F for Various Codes

Cheers! 

Betty Jo 

ps. I put in a request for RelatedTopicsOnThisArticleAsWell