W2, Code V in Block 12

[JerryG]

I have the following tax information:

W2, Block 12c, Code V in amount of 25, 867

Fidelity Statement:
ST transactions for which basis is reported to the IRS Proceeds - 56,171 Total Cost Basis - 30,380 Realized Gain: 25,791 There is no problem with this transaction
ST transactions for which basis is not reported to the IRS Proceeds – 35,579 Total Cost Basis – 0 Realized Gain: 35,579
LT transactions for which basis is not reported to the IRS Proceeds – 89,998 Total Cost Basis - 0 Realized Gain: 89,998

Fidelity Statement:
Supplemental Stock Plan Lot Detail:

Short Term Transactions:
Proceeds: 91,750 This figure is the total for the two Short Term transactions of 56,171 and 35,579
Adjusted Cost or Other Basis: 90,523
Short Term Adjusted Realized Gain: 1,381
Short Term Adjusted Realized Loss: -154
Wash: 78
Ordinary Income was reported as 60,005
Is this the transaction that I use for the ST reporting on the 8949 in which the basis was not reported to the IRS and then send the statement to the IRS as a PDF file?

Long Term Transactions
Proceeds: 89,998
Adjusted Cost or Other Basis: 63,249
Long Term Adjusted Realized Gain: 26,753
Long Term Adjusted Realized Loss: 4
Wash: 0
Ordinary Income was reported as 54,390

My question is how/what do I use to establish the basis for the two items in which the basis was not reported to the IRS?
What do I do with the Code V of 25,867 on the W2.

Thank you so much ,

Jerry Goldsmith

[Maude Lebowski]

The Code V amount is added to the basis of the stock. You need the details to figure out which stocks' basis it represents.

[Rapid Robert]

You need more information. One thing that might help is a copy of the employee's year-end pay stub, where the Code V amount should be listed and give you some clues as to what event triggered the compensation. (maybe the paystub during the year where the Code V amount first showed up would help pin down the date).

Most employers who provide company stock as compensation have supplemental statements the employee can get. They should ask the company for more detail if it was not already provided. If the company stock is managed through a large brokerage, such as ETrade, there is more info available there, at least there always has been when I looked with my clients.

Code V only applies to non-statutory stock options. (Statutory stock options are ISOs and ESPPs). Actual stock grants (not options) are also possible. Many companies offer multiple types, and unfortunately they are not reported consistently on the W-2. With options, you need to know when they were exercised and when they were sold (sometimes both happen concurrently in a "cashless exercise", while other times the options are exercised and held).