Code V on W2 - how do i report on 8949

[lyndaj0331]

Client has Code V on W2 $242,621.20; 1099-B shows gain of $242,621.20.  If I report on 8949 adds as additional income.  How do I handle this.  I know I dealt with this years ago, but cannot remember what I did and cannot remember the which client it was.  Please help.

Thank you

[Just-Lisa-Now-]

That V amount should get added to the basis of the stock shown on teh 1099B, unless the brokerage already adjusted for it.

[lyndaj0331]

They did not; however, the realized gain is the exact amount shown with code V.  Do i need to list the lots sold separately or can I enter the total and just change the basis amount that was reported to the IRS?

Do I have to provide any type of explanation statement?  Thank you for your help.

[Terry53029]

"Code V—Income from the exercise of nonstatutory stock option(s). Show the spread (that is, the fair market value of stock over the exercise price of option(s) granted to your employee with respect to that stock) from your employee’s  exercise of nonstatutory stock option(s). and is included in box one. and taxed. That will be the employee's basis. You then adjust the brokers reported basis to reflect the true basis. All the ones I have done I have never seen a brockers statement with the correct basis. You do not change the basis on the brokers statement, you use the adjustment box on the 8949. no explanation necessary