NASSAUSUFFOLK

Client exercises stock options. The earning is included in the W2. The statement from Fidelity (in this case) does not show the amount included in the w2 in the cost basis so the barter transaction is showing a big gain. Don't want the client to be double taxed so do I just adjust the statement cost basis?

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John Baldi
JOHN A. BALDI, CPA-Core Planning Services
Hauppauge NY
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John: Assuming it was the same lot that was sold, the ordinary income reported on the W-2 should be the cost basis. ------------------------------ Robert Brown ROBERT N. BROWN, CPA Jericho NY ------------------------------
Original Message: Sent: 04-02-2015 16:16 From: John Baldi Subject: stock options exercised Client exercises stock options. The earning is included in the W2. The statement from Fidelity (in this case) does not show the amount included in the w2 in the cost basis so the barter transaction is showing a big gain. Don't want the client to be double taxed so do I just adjust the statement cost basis? ------------------------------ John Baldi JOHN A. BALDI, CPA-Core Planning Services Hauppauge NY ------------------------------