I acquire company stock by exercising company options and sell it the same day. What is my basis in the stock I'm selling?

 
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Posted On : 26th Nov 2010

 I acquire company stock by exercising company options and sell it the same day. What is my basis in the stock I'm selling?

Your employer will include the excess of the fair market value over the option price in your W-2 wages. Therefore, your basis is the amount you paid plus the amount included on your W-2 plus the commission you pay.

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