Did you ever amend a prior return to change stock sold TO ISOs?
September 15, 2003
Subject: option question
Date: Tue, 02 Sep 2003
Did you ever amend a prior return to change stock sold “TO” ISO stock in order report ordinary income and avoid the AMT preference item. We held both ISO and regular stock at the time of sale. Can we go back and change our 2000 income tax return?
I need help!
Date: Fri, 12 Sep 2003
Possibly, but probably not.
The sequence of stock sales is the earliest acquired is considered sold first, unless you designate to your broker that you are selling an identified block of stock.
If you didn’t make an identified sale and bought the non-ISO shares after you exercised your ISO and erroneously reported the later-acquired shares as sold first, you can go back to correct the error.