Do I need to report option sales on Schedule D?
October 14, 2011
Date: 27 Mar 2008
I exercised non-qualified stock options for 40 shares of stock. The ordinary income was included in wages on my W-2 form. Do I still need to report the sale on Schedule D?
Date: 10 Apr 2008
If you received a Form 1099-B for the sale, you still need to report the sale on Schedule D. Add the ordinary income included on your W-2 to the option price to compute to tax basis or “cost” for Schedule D, which should eliminate the gain on that form. If you don’t report the sale, the IRS will probably send you a letter saying you underreported your income.