W-2 Box 12 Code V

This past year, I sold nonqualified stock options (NQSO) and restricted stock from my employee stock plan. I am not able to figure out how to report the cost basis on schedule D.
Based on the information below from W-2 and broker statement (I probably included more info than needed), I cannot figure out how to calculate the cost basis, nor more importantly how to calculate the gain/loss. I also wonder how the W-2 code V came to $20,701.20, but I am not sure if that matters at all for now.
Any help on what to write to schedule D is greatly appreciated.
Thanks,
RB
Here are the numbers
***First, W-2 code V: $20,701.20
***Second, For the stock options, I have:
Grant Date: 06/24/2005
Grant Type: Nonqual
Grant Price: $13.19
Sale Price:$23.72
Share Exercised: 1000
Shares Sold: 0
Gross Proceeds:$23,720.00
Taxable Gain: $10,530.00
Total Price: $13,190.00
Commission/Fee: $50.41
Taxes Withheld: $4,043.53
Net Proceeds: $6,436.06
***Third, For the restricted stock, I have:
Disbursement Details:
Gross Proceeds: $10,120.05
Commission: $19.95
SEC fee: $0.18
Net Proceeds: $10,099.92 (USD)
Vest Details:
Vest Date Cost Basis Shares Sold
05/01/2009 $12.72 147
04/03/2010 $26.08 240

Order History:
Transaction Date Quantity Price
Order Placed 09/22/2010 387 $26.15
Order Executed 09/22/2010 387 $26.15

 

 

Answer

For a very brief explanation of what is happening here:

When you exercise (buy) stock from options for which you have not yet paid, and you sell the stock that you just purchased by exercising those options, pretty much all of the money is treated as compensation(wages). Both the money used to buy the stock(option price) and the sales price of the stock come form the sale, so all of the money is wages, both gain and cost.

The company withholds taxes from cost of the exercise(since you never had the money to buy the stock to begin with) and they withhold from you the tax on the gain from the net proceeds of the sale less the cost.

You have then bought stock at the exercise price and sold stock at the FMV(presumably higher than the cost) but ALL of that income has been included as wages; therefore, you generally have a cost basis in the stock the same as the sales price of the stock(except for perhaps some selling expenses).

Your Sch. D should have sales price less cost = zero(approximately).

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