Subject: Sold Employee Stock or Stock Options in 2014
Example: Sold 10 shares of company owned xyz stock
1099-B Proceeds: (sale price) $100 Cost Basis: (Purchased Price) $20 Gain: $80
Taxes owed on $80
W-2 Box 12 code V $80 Taxes already paid on $80 stock sale which is included in wages.
Lesson: Your employer has already included your capitol gains on your stock sale in your wages (W2). When you enter your 1099-B you have to adjust your cost basis by $80 to make your capitol gains Zero. Otherwise you will be paying tax twice. I'm pretty sure that's how it goes.
Sorry, but I am now officially nuts after spending about 4 hours to learn that, just to prove a point to my wife.