I need to know how to calculate cost basis for stock sale. How do I calculate cost basis if I exercised my company stock options?
Your basis in the stock depends on the type of plan that granted your stock option.
- The plan was an incentive stock option or statutory stock option.
- The stock is disposed of in a qualifying disposition.
If the stock was disposed of in a nonqualifying disposition, the basis is the sum of these:
- Option price
- Any income reported on your W-2 as a result of the disposition
If the plan was a nonstatutory stock option, your basis is the sum of these:
- Price you paid for the stock
- Any ordinary income reported on your W-2 when you exercised the option
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